ConocoPhillips to develop Indonesia's gas block http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-07-05T123000Z_01_JAK125238_RTRIDST_0_ENERGY-INDONESIA-CONOCOPHILLIPS.XML&rpc=66
Wed Jul 5, 2006
JAKARTA, July 5 (Reuters) - U.S. oil firm ConocoPhillips (COP.N: Quote, Profile, Research) plans to develop natural gas from its working area of block A in Indonesia's Aceh province, a company official said on Wednesday.
Last year, Jakarta urged ConocoPhillips, the third largest oil firm in the United States, to sell its stake if it was not able to move faster in developing the area, gas from which was urgently needed by local fertiliser firms in Aceh.
An official from Indonesian energy watchdog BPMIGAS had said previously that ConocoPhillips was seeking to swap its stake in block A for another field in Indonesia.
"We are still working with our partner (to develop the block)," William Bullock, president and general manager of ConocoPhillips Indonesia, told Reuters.
Conoco is the operator of the block with a 50 percent stake. The other partner is a consortium comprising Japan Petroleum Exploration Co. (1662.T: Quote, Profile, Research) (JAPEX), Indonesia's PT Medco Energi International Tbk (MEDC.JK: Quote, Profile, Research) and Britain's Premier Oil Plc (PMO.L: Quote, Profile, Research).
Gas reserves in the block A are estimated at about 500 billion cubic feet but the gas contains carbon dioxide, which makes it costly to develop. Indonesia, Asia Pacific's sole OPEC member, which has far more gas than oil, is trying to phase out costly oil-fired power generation and use more of its cheaper, cleaner natural gas domestically, but faces limited supplies due to long-term LNG export commitments, which it is reviewing.
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