JAKARTA: PT Pertamina (Persero) estimates total investment of the development of the East Natuna, Riau Islands would be more than U.S.$ 20 billion or more than Rp170 trillion.
Pertamina upstream director Mohammed Husein told the East Natuna development scheme is yet to be determined, but investment is certain to be high considering the content of CO2 gas in the region is very high, reaching 71%.
"The numbers I think above U.S. $ 20 billion, may not be up to U.S. $ 40 billion. It depends on the scenario, what the gas be delivered via pipeline anything via LNG, what would be produced in whole or in half, it costs others," he said on the sidelines Pertamina halal bihalal Monday (5 Sept 2011).
Husen said Pertamina will further discuss some things with the third partner Esso Natuna Ltd., Total E & P Activities Petrolieres and Petronas. The talks mainly related to the East Natuna development scenarios, how much of its production, as well as the way delivers the gas, whether using a pipeline or LNG. But according to Husen, using a gas distribution pipeline would be cheaper than using LNG investments.
"U.S. $ 20 billion was the most expensive scenario, it is by pipeline to Sumatra or Java, there is also a pipeline for export to Malaysia. It is a scenario which we will discuss," he said.
However, not necessarily Pertamina to build LNG plant. Although using the gas distribution pipe can be cheaper, but if the distribution of gas through LNG also there are other advantages, namely the gas could be exported to countries of destination and distant.
"If we kirimnya LNG may be further. That there are count-counts," he said.
As reported previously, Pertamina has asked for special treatment in the East Natuna development, given the content of CO2 gas in the region are very high, reaching 71%.
Oil and Gas Director General of the Ministry of Energy and Mineral Resources Evita Legowo signaling split or profit sharing between the government and Pertamina in the East Natuna, can be specially treated to 60:40.
According to Evita, the government could understand that Pertamina's demand given the high content of CO2 gas in there. As is known, the content of CO2 in the East Natuna gas is not like in the fields today that its CO2 content of maximum 30%
On Aug. 19, the principles of Understanding (Principles of Agreement) exploration and exploitation of the East Natuna has just signed. PoA is intended to continue the process towards preparing a cooperation contract (PSC) is expected to be signed on 28 October.
While related to the division of shares between Pertamina and its partners, who the operator, and the approximate cost of investment for each partner, will be further discussed between Pertamina and its partners. However Husen asserted, Pertamina wants to be the operator in the East Natuna.
East Natuna has reserves of 46 tcf of gas and has a CO2 content of 71% so that development will take approximately 6-10 years. That is, the new gas could be onstream around 2021-2022.
"What is critical is that we must ensure that sufficient acreage used for CO2. It is precisely here that the problem is not looking for the gas we are now. We may take 3-5 years to ensure there is to inject CO2 reservoarnya its safe, it is very expensive," Husen said.
Although Pertamina will not know yet delivers gas to an extent, but the Minister Darwin Zahedy Saleh has called for the allocation of the East Natuna gas destined for the domestic. (*)
Pertamina upstream director Mohammed Husein told the East Natuna development scheme is yet to be determined, but investment is certain to be high considering the content of CO2 gas in the region is very high, reaching 71%.
"The numbers I think above U.S. $ 20 billion, may not be up to U.S. $ 40 billion. It depends on the scenario, what the gas be delivered via pipeline anything via LNG, what would be produced in whole or in half, it costs others," he said on the sidelines Pertamina halal bihalal Monday (5 Sept 2011).
Husen said Pertamina will further discuss some things with the third partner Esso Natuna Ltd., Total E & P Activities Petrolieres and Petronas. The talks mainly related to the East Natuna development scenarios, how much of its production, as well as the way delivers the gas, whether using a pipeline or LNG. But according to Husen, using a gas distribution pipeline would be cheaper than using LNG investments.
"U.S. $ 20 billion was the most expensive scenario, it is by pipeline to Sumatra or Java, there is also a pipeline for export to Malaysia. It is a scenario which we will discuss," he said.
However, not necessarily Pertamina to build LNG plant. Although using the gas distribution pipe can be cheaper, but if the distribution of gas through LNG also there are other advantages, namely the gas could be exported to countries of destination and distant.
"If we kirimnya LNG may be further. That there are count-counts," he said.
As reported previously, Pertamina has asked for special treatment in the East Natuna development, given the content of CO2 gas in the region are very high, reaching 71%.
Oil and Gas Director General of the Ministry of Energy and Mineral Resources Evita Legowo signaling split or profit sharing between the government and Pertamina in the East Natuna, can be specially treated to 60:40.
According to Evita, the government could understand that Pertamina's demand given the high content of CO2 gas in there. As is known, the content of CO2 in the East Natuna gas is not like in the fields today that its CO2 content of maximum 30%
On Aug. 19, the principles of Understanding (Principles of Agreement) exploration and exploitation of the East Natuna has just signed. PoA is intended to continue the process towards preparing a cooperation contract (PSC) is expected to be signed on 28 October.
While related to the division of shares between Pertamina and its partners, who the operator, and the approximate cost of investment for each partner, will be further discussed between Pertamina and its partners. However Husen asserted, Pertamina wants to be the operator in the East Natuna.
East Natuna has reserves of 46 tcf of gas and has a CO2 content of 71% so that development will take approximately 6-10 years. That is, the new gas could be onstream around 2021-2022.
"What is critical is that we must ensure that sufficient acreage used for CO2. It is precisely here that the problem is not looking for the gas we are now. We may take 3-5 years to ensure there is to inject CO2 reservoarnya its safe, it is very expensive," Husen said.
Although Pertamina will not know yet delivers gas to an extent, but the Minister Darwin Zahedy Saleh has called for the allocation of the East Natuna gas destined for the domestic. (*)
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