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Home News Oil & Gas Conoco Requested Do Prioritize Export
Conoco Requested Do Prioritize Export PDF Print E-mail
Friday, 04 December 2009 10:32

Jakarta - House of Representatives Commission VII regrets ConocoPhilips policy in South Sumatra are a higher priority to export gas to Singapore than for domestic needs, particularly in Java.

"Supposedly, a higher priority Conoco gas production to Java and not to Singapore," said a member of the House of Representatives Commission VII Dito Ganinduto in a hearing with the Chief Executive Agency for Upstream Oil and Gas (BP Migas) R Priyono in Jakarta, Tuesday. (AFP)

In the meeting which was also attended by ConocoPhillips and ExxonMobil officials, the Commission requested VII BP Migas to urge companies operating in Indonesia for more priority needs in the country.

Dito that comes from the Golkar Party faction explained, now ConocoPhillips produces gas from three fields of South Jambi, Grissik, and Suban.

Gas production was then sent via pipeline to Singapore, Duri Field is managed by PT Chevron Pacific Indonesia, and Java through a pipeline owned by PT PGN Tbk.

According to him, when production South Jambi sent to Singapore decreased from the previous 40 to six million cubic feet per day (MMSCFD), Conoco covered from Grissik Field.

As a result, Grissik which supplies gas to the plant owned by PT PLN (Persero) in Java has decreased to 60 MMSCFD.

"The impact of subsequent, PLN was forced to wear the swelling fuel subsidy," he said.

He continued, when the compressor is pumping the gas to Singapore were undergoing treatment, the supply of gas to Java has increased.

"Later, when the compressor maintenance was completed, the supply of gas to Java will fall again," he said.

Dito also said gas prices to Singapore's top 12 U.S. dollars per MMBTU or two times higher compared to Java which is only 5-6 dollars per MMBTU.

"But it should be, differences in gas prices should not be a reason. Conoco must still prioritize the gas production in the country," he said.

 
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