Wednesday, October 25, 2006

Still not certain whether Cepu would start producing gas in 2009

Jakarta (ANTARA News) - Cepu Block will likely not yet start producing gas in 2009 as the government has predicted, because its operator, ExxonMobil Oil Indonesia (EMOI), is still focusing on producing oil which is expected to begin in 2008, the company`s deputy director, Maman Budiman said over the weekend.

"We also have yet to conduct further drilling to confirm the amount of the gas reserve there," he said.

He said the company would soon open a tender for the procurement of drilling rigs.

The government expressed the hope recently that gas production in Cepu Block could be started early in 2009 to meet domestic demand especially in Java.

Indonesia`s current gas production reached 8,000 to 9,000 million cubic feet per day (MMSCFD) and more than half of it is exported among others to Japan, Taiwan and South Korea in the form of liquefied natural gas (LNG).

The country`s LNG export reaches 27.2 million tons a year, and 18.49 million tons of which, or 68 percent, are exported to Japan.

In 2025 the domestic demand for gas is expected to reach 15,000 MMSCFD. It will be met by developing several new fields that have a lot of reserves such as those in Papua and Cepu, East java.

The Indonesian government also would not renew LNG export contracts after 2010 to get around 8.3 million tons of LNG to meet the domestic demand. (*)

October 23, 2006


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