Indonesia: Java gas development wells eyed

By OGJ editors
HOUSTON, Feb. 21
– Ramba Energy Ltd., Singapore, will drill two development wells on the Jatirarangon TAC in the second half of 2011 using a one-time $2.18 million advance payment from the gas purchaser, PT Perusahaan Gas Negara.

The JRR-6 and JRR-7 wells are expected to add 4 MMscfd to the block’s present output of 3.4 MMscfd of gas and 90 b/d of oil.

PGN’s purchase price for gas from the block will jump 70% to $4.332/MMbtu from Apr. 1 and a further 3%/year until 2014. The block has been in commercial gas production since October 2004, and the TAC runs until May 2020.

PGN has reported Indonesian gas demand to be 4.86 bcfd compared with PGN’s current supply of 1.2 bcfd.

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