Andalas expands portfolio

DAVID Whitby’s Andalas Energy and Power and Pertamina have identified two new potential gas fields for its wellhead independent power projects in Indonesia.
Andalas expands portfolio Andalas expands portfolio Andalas expands portfolio Andalas expands portfolio Andalas expands portfolio

Staff Reporter

The UK-based Andalas is planning to develop an IPP portfolio at the two gas fields which would have a capacity range of 250-500MW.
The company hasn't named the two new fields, but they are within Central Sumatra where Andalas sees a large inventory of gas fields with wellhead IPP potential.
Detailed evaluation of each project's suitability to feed a future power project of sufficient size will commence this week with Pertamina's sub-surface team, and should feed into a feasibility study for each of the fields.
The fields were identified during a recent workshop with Pertamina.
According to Whitby, the company shared its know-how on the optimal method to monetize marginal gas fields through wellhead IPPs while Pertamina showcased a sampling of its gas assets inventory.
"The scalability of our gas-to-power offering in partnership with Pertamina is clear. In addition to the initial project, we have identified two additional fields within Pertamina's unrivalled inventory of gas assets," Whitby said.
"All of this has been achieved within eight months of signing our partnership agreement with Pertamina and we look forward to updating shareholders as we continue to progress our cooperation with Pertamina."
The AIM-listed Andalas had previously named the Tuba Obi East (TOE) oil and gas concession in the South Sumatran Basin as one of a cluster of three gas fields that are suitable for its IPP plans, but it has decided to allow the permit to lapse. 
Pertamina has indicated that following the expiry of the TOE technical assistance contract that it will retain and develop TOE alongside the offset fields as a single integrated unit, the MJ Cluster, freeing Andalas of the costs of developing the fields.
Last September the pair agreed to co-operate on the IPPs using Pertamina's significant inventory of gas assets for the developments, and in December Andalas submitted its first two 30MW wellhead IPP project development plans for government approval.
It envisages the first development will use gas from the MJ Cluster, which also covers offsetting fields operated by Pertamina: Karang Makmur and Simpang Tuan.
Pertamina will fund the upstream development at the MJ Cluster, which has the potential to exceed $US50 million and Andalas believes it can create more value by concentrating its resources on progressing its project pipeline.
"As our recent project submission and project inventory updates attest, our cooperation with Pertamina continues to strengthen," Whitby said.  
"Therefore rather than focus our resources on developing a single smaller gas to power project at TOE, we are focussed on continuing the momentum we have in developing a portfolio of at least five projects with Pertamina that each have the ability to add significant value.
"The inclusion of TOE in the MJ Cluster is a logical next step with the benefit of removing from Andalas the obligation to fund an upstream gas project that was not fundamental to our wellhead IPP strategy. 
"At the same time with Pertamina now the operator, TOE is back in the hands of our partner who has the resources, technical capability and the desire to develop the broader MJ Cluster unit to supply Andalas' first wellhead IPP project." 



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