Andalas makes solid progress in work with Pertamina

Indonesia-focussed energy company Andalas Energy and Power updated the market on its activities with Indonesia’s national oil company Pertamina on Monday, including the identification of a further two gas fields suitable for wellhead IPP development.

The AIM-traded firm said that was in line with the company’s strategy to develop a portfolio of wellhead independent power projects totalling between 250MW to 500MW of installed capacity fired with gas from existing fields.

Two new project locations had been identified with Pertamina.

The Andalas board said both projects were located within the company’s target area of Central Sumatra, where there was a significant inventory of gas fields with wellhead IPP potential.

Detailed evaluation of each project’s suitability to feed a future power project of sufficient size would commence this week with Pertamina’s subsurface team, the board said.

Following that, a feasibility study would be undertaken at each new project.

A joint review of the undeveloped gas fields in Pertamina’s inventory, as well as other operators, was now being undertaken.

!We were extremely pleased by the outcome of our recent workshop and the subsequent meetings between Andalas and Pertamina,” Said Andalas CEO David Whitby.

“Pertamina was represented at the workshop by over 20 people from across their organisation.

“Andalas shared its experience on the optimal way to monetize marginal gas fields through wellhead IPPs and Pertamina presented a sampling of its inventory of gas assets.”

Whitby said the workshop continued to build on the “already solid foundation” of “mutual cooperation and respect” between the two organisations.

“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.

“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.”