BP Migas signs US$53.4 billion gas contracts in two years
Monday, July 19 2004 - 02:27 AM WIB
The total volume of the gas, both the liquefied natural gas (LNG) and liquefied petroleum gas, involved in the agreements was 16.7 trillion cubic feet (TCF).
This was disclosed by BP Migas head Rachmat Sudibyo in Jakarta over the weekend.
“We have already signed 48 Gas Sales and Purchase Agreements (GSPAs), Head of Agreement (HOA) and MoU (Memorandum of Understanding), whose value was around $53 billion,” Rachmat said.
This achievement, according to Rachmat, is a pleasant thing despite the fierce competition on the world gas market. Indonesia must compete with big gas producers like Oman, Qatar or Algeria, who have the capacity to supply gas on large scale and relatively at cheap price.
Besides this, Indonesia is still able to develop its market base. It’s traditional markets include Japan, South Korea, and Taiwan and now Indonesia is also selling LNG to China and the U.S. West Coast.
Rachmat said Indonesia’s gas output has been on the rise. Besides intensifying gas production at old gas fields, the government is committed to develop and look for new oil and gas fields.
Currently, Indonesia has a total of 176.59 TCF gas reserves, consisting of 90.3 TCF proven reserves and 86.29 TCF potential reserves. These reserves will be enough for the next 60 years,
In order to encourage investment in the oil and gas sector, the government has changed the percentage of production sharing for the contractors and provided incentives for the investors those who have invested in isolated areas.
Rachmat said the government has already approved 35 proposals worth of $12.9 billion for the development of new oil and gas fields until July 2004. (*)