BPMIGAS, ConocoPhillips formally cancel gas supply contract with Singapore

Upstream oil and gas authority BPMIGAS said on Wednesday that it and US oil, gas firm ConocoPhillips had formally cancelled gas contract with Island Power Singapore as the latter had failed to fulfill condition set in the contract.

?Up to the deadline set in the contract, Island power failed to get approval from Singapore?s Energy Market Authority (EMA), thus the contract is now annulled,? BPMIGAS Deputy Chairman in charge of Marketing Eddie Purwanto told reporters.

Under the contract, which was signed by the Singaporean firm and U.S. firm ConocoPhillips, the latter will pipe gas to the Singaporean firm at the rate of 110 million cubic feet per day (MMCFD) for 15 years from its Corridor Block PSC in Southern part of Sumatra.

Eddie said that that gas that would have been allocated to Singapore would now be sold domestically. ?A number of firms, including state gas distribution firm PGN are interested to purchase the gas,? he said. He also said US giant Chevron Corp. was also interested to buy the gas for its Duri steamflood project in Central Sumatra. (godang)