11 new gas contracts will be signed in March: BP Migas

After successfully signing gas sale and purchase agreements last weekend, the upstream oil and gas regulating body BP Migas will sign 11 more similar contracts in March 2006, the Bisnis Indonesia newspaper reported in its Monday edition.

Initially, according to BP Migas chief Kardaya Warnika, it was planned to sign 20 contracts altogether last week.

Since, BP Migas was able to complete the negotiations for only nine contracts, the remaining contracts were not signed.

?It needs two months time to finish the negotiations to determine the gas price. Therefore, we are expecting that the contracts will be signed in March,? Kardaya said over the weekend in Jakarta.

Kardaya was unable to mention the total value of the 11 contracts. But he mentioned that the contract with Jambi Merang will be the biggest to sell 80 BBTU (billion British Thermal unit) of gas.

?Initially, it was planned to sell 100 BBTU, but the agreement reached for only 80 BBTU figure. Possibly, the remaining will be negotiated again,? Kardaya said.

With the completion of 11 contract negotiations, he said, the demand for gas in the domestic market can be met in the future. Moreover, the areas, where the gas is originated will be given priority as per their level of economies. (*)