Genting discovers gas in Irian Jaya

Genting discovers gas in Irian Jaya

KUALA LUMPUR (Reuter): Malaysian casino operator Genting Bhd said yesterday that its wholly-owned subsidiary, Cairns Ltd, has made a gas discovery in its Muturi concession in north west Irian Jaya, Indonesia.

Cairns holds a 45 percent stake in the concession, while British Gas Exploration and Production, a unit of British Gas Plc, controls 50 percent. The balance 5 percent is held by Indonesia's PT Saptapetra Wisesa.

The Muturi block is held under a 1992 production sharing contract with Indonesian oil company Pertamina, Genting said in a statement.

It covers an area of about 6,750 square km in the Kepala Burung region, some 2,500 km east of Indonesian capital Jakarta.

Cumulative gas flows of 40 million cubic feet per day on a one inch choke were recorded at the Mogoi Deep-1 well located in the north west of the concession.

"This is the first well drilled by Genting and its partners in this concession. An aggressive follow-up program of exploration and appraisal work is being considered to establish the size of this discovery," the statement said.

In a separate development, Genting said another wholly-owned subsidiary, Roundhay Ltd, has executed a production sharing contract for an offshore exploration concession with the Myanma Oil and Gas Enterprise to explore for hydrocarbons in Myanmar.

The Mottama M4 concession covers an area 10,381 square km.