Japan's Inpex due to unveil plans on Timor Sea gas
16-MAY-2008 Intellasia | Reuters
May 16, 2008 - 7:00:00 AM
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Japan's INPEX Holdings Inc is set to submit plans this week to develop the Abadi field in the Timor Sea, potentially one of Indonesia's biggest gas fields, an official at the energy watchdog said on Wednesday.
Indonesia is pushing oil and gas companies to accelerate exploration and production, given flagging production from its own ageing fields, and in order to avoid expensive imports.
"I will meet an INPEX official this week. I expect they will submit development plans for the Abadi gas field during that time," Achmad Luthfi, deputy chief of the energy watchdog, known as BPMIGAS, told Reuters via telephone text message.
INPEX is currently the sole operator of the Abadi gas field in the Masela block in eastern Indonesia. INPEX officials in Indonesia could not immediately be contacted.
In January, Indonesia warned INPEX that it had to submit plans for the field in May, or risk losing its contract.
However, based on its exploration rights, INPEX contract runs until November this year.
The watchdog official had previously said that Indonesia wanted INPEX to build a floating liquefied natural gas plant near Masela.
But the Japanese firm has said it aims to start commercial gas production at Abadi in around 2014-2016.
The Jakarta Post quoted BPMIGAS chair, Priyono, as saying that based on a first drilling trial by INPEX the potential gas reserves were almost as big as the giant Tangguh gas field in Papua.
The Tangguh project will take gas from the Wiriagar, Muturi and Berau blocks which together have combined reserves of 14.4 trillion cubic feet.
BP Plc is the operator of Tangguh project, which is expected to start production of liquefied natural gas in the fourth quarter of this year.
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