Indonesian Political, Business & Finance News

Natuna gas leak still under repair

| Source: JP

Natuna gas leak still under repair

The Jakarta Post, Jakarta

Bad weather has been blamed for the slow pace of reparation
work on the 650-kilometer undersea pipeline from West Natuna
island to Singapore, which was shut down due to a leak earlier
this month.

Indonesia's oil and gas regulator BP Migas expects another
week before full restoration of gas supply is restored.

"We have not finalized the repair work. Bad weather got in the
way. However, we hope to resume full supply in a week," said BP
Migas chairman Rachmat Sudibjo.

The leak has caused financial losses to Star Energy and
Premier Oil, two West Natuna offshore gas producers that stopped
supplying gas because the south valve of a subsea tie-in was shut
down for the repair work. The gas supply from ConocoPhillips was
not disrupted.

"We have incurred around US$250,000 in delayed revenue and a
small amount of lost revenue every day since the detection of the
leak," said Supramu Santosa, president of Star Energy.

He added that Star Energy supplies 20 percent of the 350
billion btu (British thermal units) per day supplied by the three
companies. "We have to keep a bit of gas flowing to maintain the
pressure within the pipe," Supramu told The Jakarta Post.

In a previous report, deputy chairman Trijana Kartoatmodjo
indicated that it would be up and running at full capacity would
by Dec. 2. He added on Tuesday that the repairmen were able to
dive and work on the leak.

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