Tender Procurements and Contract Opportunities Indonesia

JAKARTA: Suban III Field Development, Block Corridor, hampered by the difficulty of the discussion about unititiation between ConocoPhillips as operator and PT Pertamina EP has thrown gas reservoirs with Suban III.
Expert Staff Planning Division Executive Agency for Upstream Oil and Gas Ronodimedjo Sumitro Kardi said based on the results of the coordination meeting which also included the Vice President mentioned two reasons Suban III not being developed.

First, he said, the results of tests on the gas reserves are less encouraging. Second, the discussion unitisasi between Pertamina EP and ConocoPhillips are protracted.

"III Suban test results less than satisfactory. In addition, between Pertamina and Conoco unitisasi protracted, the two sides are still ankle-engkelan that Suban III could not be developed," he said today.

Sumitro admitted to not knowing the reason why ConocoPhillips is reluctant to unitisasi Suban III, whereas the existing studies of Lemigas. "ConocoPhillips has not been willing to accept. Pertamina EP has also been proposed to be the operator of that field could be developed."

In fact, said Sumitro, unitisasi problems that can evolve over the development of the field were conducted. Both companies are advised to use the division of rights based on the number of temporary reserves.

"Later when developed to produce a new number, can be recalculated. It was common practice in other fields. I do not know why between ConocoPhillips and Pertamina still can not meet."

Based on Government Regulation No.35/2004, KKKS required to make mandatory unitiation reservoir in case of slowdown in the region of other contractors. The purpose of unitiation among others, to reduce costs in the mining of oil and gas and oil mining optimize technical processes. .

When polled, Commercial Vice President of Pertamina EP actually Jarwo Sanyoto said the two companies already have an agreement for two things, related to unitiation namely the distribution rights of participation and operatorship.

According to him, based on existing data backup, ConocoPhillips has a much larger part of the Pertamina EP, which is more than 90%. "We also agreed that remain as operator ConocoPhillips Suban Field III," he said.

However, adding the deal was recognized Jarwo still need further discussion. "Because it was still limited to one sheet of paper only deals. To unitisasi needs a more comprehensive agreement and some things are still no deal."

Some things that until now has not been agreed on by both parties, is associated with the calculation of production costs and results in the past or past cost and past production, namely in Suban Suban I and II. Pertamina EP, he says, assume there are some rights under the Conoco gas produced from both the field who has participated on behalf of U.S. companies sold it.

"We feel there are parts of us who took part were sold so it must be returned belong to Pertamina EP. However, Pertamina EP must also take into account the costs already incurred ConocoPhilips before getting it right. Refund is not in money, but in kind," he said.

Furthermore, the word Jarwo, That Other agreements need to be made is about the future allocation of Pertamina EP after the entry of Suban owners as part III. For the allocation of gas, Pertamina EP Furthermore, the word Jarwo, That Other agreements need to be made is about the future allocation of Pertamina EP after the entry of Suban owners as part III. For the allocation of gas, Pertamina EP cans at least have the right to Argue.ns at least have the right to Argue.

"Should these agreements could be made immediately so that production can quickly Suban III," he said. (Yn) By: Rudi Ariffianto (Bisnis.com)

www.tenderoffer.biz

< Prev		Next >