Senoro gas allocation for domestic

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Senoro gas allocation for domestic

Friday, 05 March 2010 09:06

BP Migas: Status of projects in the hands of the Coordinating Minister for Economic Affairs

JAKARTA: Executing Agency Upstream Oil and Gas have been known to allocate gas from the Field Senoro to meet domestic demand since October last year.
Based on documents obtained by Business, Division Head of BP Migas Jianbang through memos No.0133/BPA3000/2009 / S1 dated June 26 to the Head of BP Migas, said Officer Senoro will be developed to meet domestic needs.
In the memo also mentioned related processes required for field development is not done prior to the clarity of the allocation of gas and gas field Senoro Donggi.

"Final status until October 5 Development of the field wait for government decisions about allocation certainty of developing the gas field and Donggi Senoro," say documents obtained yesterday.

BP Migas to make Donggi-Senoro project as one project status 'needs serious attention'. This one was caused by a lack of clarity about the government's allocation of gas, domestic or export.

Executing Agency Head Upstream Oil and Gas R. Priyono said the status-Senoro Donggi projects being handled Coordinating Minister Hatta Rajasa. "Status of the project was handled by the Coordinating Minister for Economic Affairs," he said.

With agreed-Senoro Donggi project will be developed in the upstream-downstream, he said, the task of BP Migas is already complete. BP Migas has provided all the calculations that the project economics of the well's mouth in the business side of upstream projects.

"Actually, BP Migas, the task was done because we've given all calculations economics until well head," he explained.

Director General of Oil and Gas Ministry of Energy and Mineral Resources Evita Herawati Legowo, explaining his party was reviewing the gas and LNG projects Donggi-Senoro, associated with changes in the technical and economic aspects of the project.

Review

He said the study was the technical ministries of the project was completed and submitted to the Vice President Boediono. However, he admitted there was a new request from Vice President to review it.

"From our [technical ministries] have we sent. Although yesterday we were asked to resubmit," he told Business.

However, Evita did not provide more detailed statement about the two aspects which are about to be re-examined. He was also reluctant to answer when asked whether it was related to the allocation of gas supplies and prices.

As is known the two problems, namely the allocation of gas and the sale price, a part that continues to be highlighted from this project.

Investor upstream Donggi-Senoro project, which consists of PT Pertamina (Persero) and PT Medco Energi Internasional Tbk requires a combination of domestic exports and to maintain the project economics.

In another part, State Minister Mustafa Abubakar SOEs will ask for an explanation of PT Perusahaan Gas Negara (PGN) on the plan 20% reduction in gas supplies to industry and determine the steps to be taken.

According to him, from the results of discussions with PGN will produce two options.

First, can maintain the supply of gas, all new gas demand is not too much.

Second, if the gas supply to the industry has done the maximum but not sufficient, the supply should be adjusted.

"We have to forsir to Masela, Senoro, and Cepu. I asked Pertamina to accelerate upper reaches sector. I see also Energy and Mineral Resources Minister and Coordinating Minister for Economic Affairs of the same opinion," he said.