Unocal to develop new gas field in East Kalimantan

Unocal Indonesia Company plans to develop a new gas field off the coast of East Kalimantan later this year to further increase the gas production from its oil and gas concession area in the province, Kaltim Post reported on Thursday.

Unocal's manager for communications and government relations, Usman Slamat said on Wednesday that the American oil and gas company would invest about US$40 million to develop the new field, which is located in the Kutai Kartanegara (Kukar) regency.

Speaking during a consultation meeting with top officials of the Kukar administration, Usman said that the new field, named Sapi Gas Field, was expected to begin production before the end of this year.

"The filed with estimated gas reserves of up to 45 billion cubic feet is expected to be able to produce 30 million cubic feet per day," he was quoted s saying. He said that Unocal would be able to generate profit of up to US$40 million during the first four years of the field's operation.

Unocal, which operates a number of oil and gas fields in East Kalimantan, is one of major oil and gas producers in the country.(*)