JAKARTA (RambuEnergy) – The Indonesian Energy and Mineral Resources Ministry has approved the plan of development (PoD) of the Kasuri Block in West Papua, which is developed by Malaysia’s Genting Oil.
Genting Oil was awarded by the Indonesian energy ministry in 2008 to explore the Kasuri block. The block is estimated to have the capacity to produce 285 million standard cubic of gas (MMSCFD). The operator has begun exploring the block since 2013.
“It (the PoD) has been approved by the Minister,” the Head of Special Task Force for Upstream Oil and Gas (SKK Migas) at the energy ministry Amien Sunaryadi said as quoted by Bisnis Indonesia.
The further development of the block has been hampered by the ability by the company to reach deal with the off-takers of the gas produced by the block.
To develop the block, Genting Oil, is seeking to cooperate with an investor from China. The company and the investor would develop an integrated petrochemical plant based on gas. With the plan, Genting will have long-term and sustainable off-taker of the gas from Kasuri block.
Genting Oil Deputy General Manager Wandy Wanto has said earlier that the gas from the block will be converted into methanol that will further be used to produce polyethylene and polypropylene.
The planned development of the petrochemical complex is in line with the government’s drive to push for development of integrated petrochemical complex in key areas. (*)