Indonesia plans Irian Jaya gas output<\/p>\n
SINGAPORE (Reuter): Indonesia plans to bring two gas trains
\nonstream in Irian Jaya by 2003-2004, the president of Atlantic
\nRichfield Co (ARCO) Indonesia said yesterday.<\/p>\n
\"State-owned Pertamina oil company announced through an
\ninterview that they were shooting for 2003\/4 start ...that is
\nstill our goal,\" Leon Codron told Reuters in an interview on the
\nsidelines of an Asian upstream conference.<\/p>\n
ARCO holds 80 percent and 40 percent in the Wiriagar and Berau
\nblocks in Bituni Bay, Irian Jaya, the western half of New Guinea
\nisland.<\/p>\n
Kanematsu Corp holds the remaining 20 percent in Wiriagar and
\n12 percent in Berau, which is also held by Occidental Petroleum
\nCo with 22.86 percent and Nippon Oil Co. 17.14 percent.<\/p>\n
Industry estimates suggest proven reserves of gas at Irian
\nJaya were about eight trillion cubic feet (TCF).<\/p>\n
But Codron said it would be speculative to comment on proven
\nreserves at this point.<\/p>\n
\"At the appropriate time, we will make announcements,\" he
\nsaid.<\/p>\n
\"It doesn't matter whether we have 20 TCF or 15 TCF. The key
\nis to have sufficient proven reserves for two trains that will
\nmeet market timing and that we enter that market at the first
\nopportunity,\" he said.<\/p>\n
\"That is indicative of where we will be in the next 18
\nmonths,\" Codron said.<\/p>\n
Industry sources have said the high costs of drilling in the
\narea will be a deterrent for other companies to intensify
\nexploration in the eastern part of Indonesia.<\/p>\n
Codron said although Indonesia presents an attractive target
\nfor selective upstream investments and has strived to remain
\ncompetitive, Indonesia may consider some changes to attract large
\nupstream investors.<\/p>\n
\"The ability to adapt to change in order to remain competitive
\nis paramount,\" he said.<\/p>\n
The four changes he recommended were more incentives for
\ninvestment in marginal fields and enhanced oil recovery (EOR),
\ntax consolidation, transparency in domestic pricing and
\nsimplifying administrative prices.<\/p>\n
\"We are clearly in a period of transition in Indonesia,
\nadapting to new global situations,\" he said. \"It is really a
\ncompetitive environment worldwide in the oil and gas sector from
\nthe investment standpoint.\"<\/p>\n
He said most of these reforms were already taking form.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-plans-irian-jaya-gas-output-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }