Genting’s O&G unit gets Indonesian regulator's nod for development plan revision in West Papua

KUALA LUMPUR (Feb 13): Genting Bhd said its 95%-owned unit Genting Oil & Gas Ltd (GOGL) has received approval from an Indonesian regulator for a revision to the first phase plan of development for the Asap, Merah and Kido structures (POD 1) in West Papua, Indonesia.

These structures are within the concession area for the Kasuri Block, which was awarded to GOGL's wholly-owned unit Genting Oil Kasuri Pte Ltd (GOKPL) following a production-sharing contract (PSC) signed in May 2008.

In a bourse filing on Monday (Feb 13), Genting said GOKPL received the letter on the revision approval from Indonesia's Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas).

The original plan of POD 1 aimed to utilise 1.735 trillion cubic feet (tcf) of gas-initial-in-place (GIIP) in the Roabiba formation in the POD 1 structures to supply natural gas to a petrochemical plant to be built in Teluk Bintuni for 20 years.

The revised plan will now utilise 2.674 tcf of GIIP, which will derive from 1.735 tcf GIIP in POD 1, and another 0.939 tcf GIIP from additional Merah resources and the Steenkool formation.

“The revised POD 1 aims to supply 230 million cubic feet per day (mmcfd) of natural gas to a floating liquefied natural gas plant (FLNG) for 18 years, as well as another supply of 101 mmcfd of natural gas to an ammonia and urea (amurea) plant to be built in West Papua for 17 years,” said Genting.

The current PSC for the Kasuri Block in West Papua will expire in 2038. But the SKKMigas letter stated that GOKPL is eligible to apply for an extension of the PSC according to the economic life, in accordance with the applicable regulations.

“The supply of natural gas to the FLNG and amurea plant are subject to all necessary approvals being obtained from the Indonesian government,” said the group.

In a separate development, Genting said GOKPL has inked a Heads of Agreement with PT Pupuk Kalimantan Timur (PT Pupuk Kaltim), setting down the framework for the potential supply of natural gas to an amurea plant to be built in West Papua by PT Pupuk Kaltim.

Genting’s share price closed three sen or 0.59% lower at RM5.08 on Monday with some 1.76 million shares changing hands. At the closing price, Genting is valued at RM19.69 billion.