Conoco looks for more buyers for its West Natuna gas

American oil and gas company Conoco Inc. said it was looking for more buyers for its natural gas reserve in the West Natuna section of the South China Sea.

Company executive vice president for exploration and production Rob McKee told reporters on Thursday its gas reserve in West Natuna was still larger than needed for the Singaporean and Malaysian gas contracts that had been and would be signed by state oil and gas company Pertamina.

"Until now, even after the Singaporean and Malaysian deals, we still have excess capacity and are still looking forward for the next sale. There is a potential of further gas sales to Malaysian, Singapore and maybe even Indonesia," McKee said.

Conoco is a member of the West Natuna Consortium Group, which will send gas to Singapore starting January next year under the 22-year contract signed by Pertamina and Singapore's Sembawang Corp in 1999.

Other members of the consortium are British company Premier Oil and Canadian firm Gulf Resources.

Conoco and its partners in the Block B Production Sharing Contract (PSC) will supply 43.1 percent of the 2.5 trillion cubic feet (TCF) to be delivered by the consortium throughout the 22-year contract period.

Conoco will also become the exclusive gas supplier to Malaysia under the 20-year contract to be signed by Pertamina and Malaysian oil and gas Company Petronas.

Pertamina signed on Wednesday the initial agreement with Petronas for the gas supply and the deal was expected to be signed in November this year.

Under the deal, Conoco will send a total of 1.5 TCF of gas for 20-years from Block PSC to the Malaysian territory through pipeline starting from 2002.

Block B is 40 percent owned by Conoco, 35 percent by Inpex, and 35 percent by Texaco.

Conoco operates four PSCs in Indonesia, that is Block B PSC, Tobong PSC, North West Natuna II PSC, and Warim PSC. (alex)