Vico estimates 20 percent drop in gas production in 2003

Oil and gas producer Vico Indonesia estimates gas production from its Bontang fields in East Kalimantan will drop by 20 percent in 2003, from the current 1.2 billion cubic feet per day (BCFD), an official said on Tuesday.

Vico president director Simon Potter said on Monday the production decrease was due to gas reserve depletion.

Potter said however Vico?s gas production fall would not affect the liquefied natural gas (LNG) production of Bontang-based PT Badak NGL Co. Vico had anticipated gas production decrease from its fields, he added.

Currently, Vico operates four oil fields in Bontang namely Badak, Nilam, Sumberah and Mutiara.

Potter went on to say his company had allocated US$75 million for gas mining projects in Bontang in 2002, including the development of area marginal gas potentials.

Vico has since 1973 developed 470 oil and gas wells and discovered gas reserves totaling 14 trillion cubic feet, and oil reserves of 457 million barrels.

Vico?s gas goes to Badak NGL?s LNG plant. Other gas suppliers for the plant include TotalFinaElf E&P and Unocal Indonesia. (*)