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Malaysia’s Genting Oil to revise development plan for Kasuri block
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Workers tighten a drill at an oil and gas well in Maluku. (kompas.com/-)
T
he Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) has asked Malaysian oil and gas company Genting Oil to revise its development plan for gas fields at the Kasuri block in West Papua.
SKKMigas deems Genting’s plans to be too costly.
The gas fields are the Asap, Kido and Merah fields, which are expected to produce 285 million standard cubic feet per day (mmscfd) of gas starting in 2019.
“We have asked Genting Oil to revise its plan of development [POD] because the proposed development cost is too expensive,” SKKMigas deputy for operation control Fatar Yani Abdurrahman told reporters in Jakarta recently.
Read also: Indonesia's upstream projects proposed for strategic project list“For instance, the company states that the cost to develop one well can reach US$80 million to $85 million, while we estimate the cost might only stand at $30 million.”
Moreover, Fatar said the company had also proposed to procure a gas compressor worth $200 million, which he deemed unnecessary for the early development phase of the fields.
While waiting for the POD revision, Fatar said the company was trying to find buyers for the gas produced at the Kasuri block at a price of around $6 to $7 per million British thermal unit.
(dmr)
