SPA soon ready for Simenggaris gas

By Godang Sitompul

Upstream authority BPMIGAS has approved plans to send gas from Simenggaris block in Tarakan, East Kalimantan to PLTGU Tanjung Batu a combined cycle power plant in Kutai belonging to state owned utility firm PT PLN.

?Gas from Simenggaris will go to PLN, it has been approved. Now the sales and purchasing agreement (SPA) documents are being finalized,? BPMIGAS Deputy Chairman of Operation Control Gde Pradnyana told petromindo.com.

Simenggaris is operated by PHE-Medco JOB, a partnership between Pertamina Hulu Energi (PHE), a subsidiary of state owned oil and gas firm PT Pertamina, and PT Medco Energi Internasional.

PLN?s Oil and Gas Fuel Division Head Suryadi Mardjoeki told petromindo.com that the firm is ready to sign the SPA. PLN expects to secure 25 mmscfd of gas from the block.

Editing by Dadan Wijaksana