Unocal set to develop Gehem field as Bontang LNG next gas supplier

Upsteam oil and gas authority BP Migas said it would assign U.S. oil and gas company Unocal Corp. to develop its Gehem gas field offshore East Kalimantan to back up gas supply to Bontang LNG plant.

“Gehem is expected to commence gas production around 2006-2007," said BP Migas chairman Rachmat Soedibjo. Rachmat said Gehem has 2-3 trillion cubic feet of gas reserves.

Bontang LNG plant experienced gas supply shortage lately as major producers Total SA, VICO and Unocal had operational difficulties in their respective areas, while demands from South Korean and Japanese LNG buyers increased due to colder winter.

Gehem is located in Ganal PSC in deep water of Makassar Strait. Unocal has a 80 percent working interest in Ganal, with the remaining interest held by Italian oil company ENI SPA.(alex)