VICO Indonesia's gas production starts to decline

The gas production of VICO Indonesia, one of the country's major gas producers, has begun to show a declining trend due to the depletion of gas reserves in its several gas fields in East Kalimantan, Kaltim Post reported on Friday.

Bambang Prihandono, the drilling support superintendent of the company, said on Thursday that the company, which began its gas production in the province in 1990 now produces only about 660 million standard cubic feet of gas per day (MMSCFD), far lower than its target of 800 MMSCFD.

"The company is trying hard to halt the production decline such as by developing new gas wells," he said.

VICO Indonesia operates at least 500 gas wells at several gas fields in Semberah, Badak, Nilam and Mutiara in East Kalimantan. The gas is supplied to the Badak LNG plant and state owned fertilizer company in Bontang through a massive gas pipeline.

The 53-km pipeline transmits about 3,500 MMSCFD to the LNG and fertilizer plants, most of which are taken from the gas fields owned by Total Indonesie and Unocal. (*)