Pertamina-Medco Announce Well Discovery in Central Sulawesi Block

Tempo Interactive, Tuesday, 20 April, 2010 | 17:16 WIB

TEMPO Interactive, Jakarta: A venture of State Oil Company Pertamina and Medco Energy announced discovery of two oil and gas wells in Senoro block, Central Sulawesi found last year.

One of the wells according to General Manager Joint on Board Pertamina-Medco Hendra Jaya was drilled last year and a second one to be drilled this year, with potential reserves of both wells estimated at 5-10 million cubic feet per day.

“The gas could be used to generate electricity in Banggai regency,” Hendra Jaya told a seminar on acceleration of Donggi-Senoro project in Jakarta today (20/4). The amount he said was capable of generating electricity up to 25 megawatt per day for 20 years.

The venture said it is waiting for sales appoval from the Upstream Oil and Gas Regulatory Body (BP Migas) although it has open talks with the State Electricity Company and said it will remain open for offers from private electricity contractors.

Oil and gas exploitation from the block was disrupted last year after the consortium, which include Mitsubishi, failed to agree on several points of sales agreements with the government which put export plans from the block on halt.

Recently a member of the reginal House of representatives had urged the government to deliver its promise, made by Vice President Boediono last month to settle the trade dispute.

Nawawi Sang Kilat a regional lawmaker said the governmentaa has discriminate the region for allowing other region to export its gas, while preventing Donggi-Senoro block to trade with foreign buyers. Revenue from the block Nawai claimed could lift regional budget to Rp1.2 trillion from the current Rp1.1 trillion.

DESY PAKPAHAN