SKK Migas asks Genting to speed up PoD process
Thursday, August 4 2016 - 03:13 AM WIB
Upstream authority SKK Migas has asked Malaysian firm Genting Oil Kasuri Pte Ltd (GOKPL) to quickly finish the Plan of Development (PoD) for Kasuri block in West Papua province.
SKK Migas? spokesperson Taslim Z. Yunus said the government wants the firm to develop the block as soon as possible because it is expected to become a supplier of gas to the industry projects that will be developed in the area. The government has designated the Bintuni area, where the block is located, to be a special industrial zone for fertilizer and petrochemical production.
Aside from fertilizer and petrochemicals, gas from the block can be potentially used for power generation in the region, Taslim said, while noting the possibility of the Kasuri gas being used for power generation is still under review.
Taslim said Genting and SKK MIgas initially planned start discussing the PoD for Kasuri in July of this year. However, the plan has failed to materialize since the firm has yet to submit the PoD.
?The reason they have yet to submit the PoD is because until now, there isn?t yet any offtaker for the gas. Ferrostahl (German firm) has offered to buy the gas but set the price at US$3.5 per mmBtu, which is too low. The president decree set the lowest price for gas at $6 per mmBtu. Thus, the difference is too big,? Taslim said.
None of Genting Oil?s officials are available for comments.
GOKPL owns 100 percent of Kasuri. The firm has discovered reserves amounting to 1.8 tcf (P1), according to Director General of Oil and Gas IGN Wiratmaja.
Editing by Johannes Simbolon