BP Migas: Medco, Pertamina Must Submit New Senoro-Toili Plan

BP Migas wants Medco and Pertamina to submit a new plan of development for the Senoro-Toili block after changing the gas allocation, said Achmad Luthfi, Planning Deputy of the Indonesian upstream oil and gas supervisory agency.

"If they want to build an LNG plant, they of course have to submit a plan of development," he said.

Gas from Senoro-Toili was initially allocated to supply power plants, but eventually the plan changed into constructing a mini-LNG plant for exports.

Medco and Pertamina have not submitted the new plan of development for Senoro-Toili block, even as the companies have awarded the contract to build the US$1 billion LNG plant in Senoro to Mitsubishi.

Gas supply from Senoro Toili block in Sulawesi will be combined with output of the fuel from Donggi block for the LNG plant. The plant will have a capacity of 2 million tons and is scheduled to start operation in 2009. The LNG will be shipped to Japan.