Update 1: ExxonMobil in talks with PLN on CBM offtaking agreement
to produce 500 mmscfd in the next five years
Thursday, August 12 2010 - 07:30 AM WIB
ExxonMobil Oil Indonesia senior official Maman Budiman said in parallel with the discussion with PLN, the company and its local partner PT Sugico Graha were currently, preparing pilot drilling within the three blocks. ?We will start drilling at the end of this year,? he said on Thursday.
In January 2010, Maman said ExxonMobil has farmed-in Banjar 1, Banjar 2 and Barito Tapin CBM exploration blocks which are operated by PT Sugico Graha.
Maman did not disclose Exxon?s percentage of interest in the block, but said that Sugico will retain the blocks operatorship.
In press release on Thursday, PLN said that the government has appointed Exxon to conduct preliminary study and survey to develop CBM potential in Kalimantan. The project is expected to be completed this year or early of 2011.
Within the next five years, the gas production from CBM is expected to produce around 500 mmscfd, which can generate around 2,000 MW, PLN said.
PLN?s primary energy director Nur Pamudji confirmed the talks, saying that currently PLN, Exxon, and Sugico were conducting technical discussion about the potential gas from the CBM blocks.
Pamudji said that the blocks have potential of 50 trillion cubic feet (Tcf) of gas. The gas is expected to flow in 2011 with initial volume of 2.5 mmscfd, which can generate 8 MW of electricity.
PLN is planning to convert 150-MW Trisakti diesel-fired power plant in Banjarmasin , South Kalimantan, to receive more gas from the CBM blocks, he said, adding that if the volume of gas is too small, PLN will supply to PLN?s mini-scale power plant
Another option to collect the gas is through the development of mini LNG in South Kalimantan , under which the gas will be delivered to Kupang, East Nusa Tenggara, or other eastern Indonesia region, which is lacking of gas resources.
?But to build the mini LNG, we will conduct a study first,? he said, without giving details.
PLN is also requested to give an incentive for the gas price from the CBM project. ?The price (of CBM gas) should be different with (that of) conventional gas,? he added. (godang)