Govt agrees to extend BP contract<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
BP Indonesia, the local unit of Anglo-American energy giant BP
\nPlc., says the government has agreed in principle to extend its
\ncontract in managing the Kangean block, in East Java.<\/p>\n
BP Indonesia president Bill Schrader said on Monday that the
\ncompany was now waiting for official approval from the
\ngovernment, and details of the contract.<\/p>\n
\"What I hear is that the government has agreed in principal on
\nthe extension .... We have been (engaged) in many discussions
\nwith legislators, BP Migas (the Implementing Oil and Gas Body)
\nand the Ministry of Energy and Mineral Resources. It's going very
\nwell,\" Schrader told reporters during the presentation of BP
\nStatistical Review of World Energy 2003.<\/p>\n
Early this year, BP requested the extension of its
\nproduction-sharing contract in the Kangean Block, which expires
\non Nov. 13, 2010.<\/p>\n
If the official nod from the government is given, the energy
\ngiant could search for new gas reserves in Terang Sirasun and
\nBatur, which lie within the Kangean Block in a bid to recover its
\ndeclining gas production.<\/p>\n
It has been estimated that the gas production will
\ncontinuously diminish to 100 million standard cubic feet per day
\n(MMSCFD) in 2005 and to 20 MMSCFD in 2010 from current production
\nlevels of 180 MMSCFD, due to diminishing gas reserves in the old
\nfields.<\/p>\n
As of the end of 2002, BP had produced 11.74 million barrels
\nof oil and 947 billion cubic feet of gas.<\/p>\n
BP at present supplies gas for the East Java market along with
\nother gas producers.<\/p>\n
Demand for gas in East Java is currently at 424 MMSCFD but it
\nis expected to increase up to 600 MMSCFD.<\/p>\n
However, gas supply from producers has declined sharply to 290
\nMMSCFD from 390 MMSCFD previously. This is partly due to a drop
\nin the gas reserves at the Kangean block.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-agrees-to-extend-bp-contract-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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