7 gas sales agreements signed
Wednesday, May 15 2013 - 12:03 PM WIB
Seven new and amended sales and purchase agreements for the provision of gas in the country were signed on Wednesday, which are expected to generate US$571 million in additional revenue to the government.
The seven new and amended agreements were signed during the annual 37th Indonesian Petroleum Association (IPA) conference with Minister of Energy and Mineral Resources Jero Wacik standing as witness.
?The signing of the new and amended gas sales and purchase agreements serve as an evidence of SKK Migas and PSCs? commitment to meeting the gas needs of the domestic market as well as supporting the gas needs of oil refineries, industries and electricity as part of the national energy resilience,? SKK Migas? Chairman Rudi Rubiandini said during the signing ceremony.
The seven agreements are:
1. The amendment to the gas sales and purchase agreement between Chevron Indonesia Company as seller and PT Pertamina as buyer for the supply of gas for the production of oil fuels at Balikpapan refinery and Lawe-lawe terminal at a rate of 45 mmscfd for the period of January 2013 through 2018.
2. The amendment to the gas sales and purchase agreement between EMP Bentu Limited as seller and PT Riau Andalan Pulp & Paper as buyer for the gas supply of 21 billion British thermal unit per day (bbtud). The contract is valid from January 1, 2012 through January 31, 2020 from March 1, 2013 or the beginning of operation of the Seng-1 well.
3. The gas sales and purchase agreement between Santos (Madura Offshore) Pty. Ltd as seller and PT Perusahaan Listrik Negara (PLN) for the provision of 25 bbtud of gas for power generation. The 4-year contract is effective from the outset of gas supply and the supply must be started 24 months since the signing of the contract at the latest.
4. The amendment to the gas sales and purchase agreement between PT Pertamina EP as seller and PT Media Karya Sentosa as buyer for the supply of 40 bbtud over a contract period from April 1, 2012 through December 2013. New price is effective as of January 1, 2013. The gas is used for power generation and LPG production.
5. The amendment to the gas sales and purchase agreement between PT Pertamina EP as seller and PT PLN as buyer for the supply of 5 mmscfd of gas. The gas is used to generate power in Jambi. The contract is effective from the start of supply until May 14, 2017. The supply must be started six months after the signing of the agreement amendment at the latest..
6. The gas sales and purchase agreement between PT Pertamina EP as seller and Perusda Serumpun Pseko as buyer for the supply of 1 mmscfd of gas. The gas will be used to generate power in Sarolangun regency, Jambi. The contract is valid from the start of supply until December 31, 2017 and the supply must be started eight months after the signing of the agreement at the latest.
7. The amendment to the gas sales and purchase agreement between PT Lapindo Brantas as seller and PT Perusahaan Gas Negara (PGN) as buyer for the supply of gas in East Java. The supply rate is unchanged and the contract is valid from January 2013 through 2018.
Editing by Johannes Simbolon