East Java: Stepping off the Gas

Because of the scarcity of gas, the government is to extend the BP-Indonesia contract in its Kangean Block. But some members of the DPR firmly reject this.

December 10, 2002

The State Gas Company (PGN) is really stretched, trying to deal with the lack of gas supplies in East Java. All this time, they have been buying gas from sole producer Pertamina. For years, that supply remained secure, but suddenly two years ago, Pertamina was unable to meet the demand of around 375 million cubic feet (mmscf) per day, on the grounds that contractor BP-Indonesia, appointed to sell gas, had experienced a drop in production. Also,

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