Unocal expects new gas fields to come onstream 2006

US independent oil, gas company Unocal Corp. expects first gas from its new gas fields offshore East Kalimantan to come onstream by the second half of 2006 to supply natural gas to Bontang LNG.

Gas supply volume from Gehem and Gendalo fields is expected to range between 100 MMCFD-300 MMCFD, CEO and President Charles Williamson said when addressing a conference in New Orleans Tuesday.

Wiliamson said Gehem and Gendalo fields have 3-5 TCF of reserves with 10 wells drilled to date. Engineering and scooping studies will be completed in the third quarter of this year.

Williamson said Unocal had made 6-16 TCF of new discoveries in East Kalimantan in recent years with 3.3TCF already certified. Unocal will spend US$60 million in exploration expenditure in Indonesia this year.

Unocal is one of gas suppliers to Bontang LNG plant beside Total E&P Indonesie and Vico Indonesia. Unocal's gas production is currently 160 MMCFD. Bontang has the capacity to absorb 3.5 BCFD of gas.

Bontang LNG is expected not to be able to fulfill all LNG supplies commitments to buyers this year and would have to search for overseas spot cargoes, as East Kalimantan producers are in short supply of gas due to delays in several fields developments.

Williamson said currently Bontang still has 500 MMCFD of supply capacity that can be fulfilled until LNG supply contracts with Japanese buyers expired in 2010.(alex)