23 energy, mining, oil and gas projects to be signed next week

President Bambang Susilo Yudhoyono is scheduled to witness the signing of 23 energy, mining, oil and gas projects in Subang, West Java on March 13, the secretary general of the ministry of energy and mineral resources, Waryono Karno has said.

"The signing of the 23 projects indicates that investment in the energy, mining and oil and gas sector is growing," he said on Wednesday.

He said that the contracts to be signed would include the change in the status of four Coal Contract of Work (PKP2B) mining projects from domestic investments or PMDN companies into foreign investments or PMA companies, four power purchasing agreements with state owned electricity company PLN and six engineering procurement and construction (EPC) agreements for new power plants to be built under the government's crash power program.

Earlier report said that PLN again postponed the signing of the EPC contracts for two 600-700 megawatt (MW) class coal-fired power plants and four 300-400 MW class because it is not clear about the financial guarantee. The signing was previously postponed twice -- on January 31 and February 28.

In addition, nine oil and gas projects would be also signed during the ceremony which would he held in Subang, Waryono said.

On March 2, 2007, the government awarded the right to operate nine oil blocks to the winning tender.(*)