Gas found in Timor Sea

Gas found in Timor Sea

TOKYO (Dow Jones): Tokyo-based Indonesia Petroleum Ltd. has discovered natural gas in an area of the Timor Sea belonging to Indonesia, company sources said Thursday, according to the Nihon Keizai Shimbun's Friday morning edition.

The company has confirmed the field is capable of producing 25 million cubic feet of natural gas daily (equivalent to 4,300 barrels of crude oil) and also 260 barrels per day of condensate (a natural volatile oil) at a field 800km east of Kupang, West Timor. This is the first ever discovery of natural gas in the Indonesian part of the Timor Sea.

Indonesia Petroleum will decide whether to proceed with commercial production after evaluating the gas discovered, making further test drilling and rechecking on the gas deposits there.

The company acquired concessions for the field from Pertamina, the Indonesian state-owned oil and gas company, in November 1998.

The firm is also exploring the possibility of gas exploitation in an area of the Timor Sea belonging to Australia, the sources added.