Conoco to hold bidding for West Natuna-Malaysia pipeline project
Friday, October 27 2000 - 08:00 AM WIB
Conoco Indonesia, a subsidiary of American oil and gas firm Conoco Inc, will hold the bidding process for the construction of its natural gas underwater pipeline linking the West Natuna area in the South China Sea to Malaysia in the next two or three months, a source at state oil and gas company Pertamina said.
The source said companies that may participate in the bidding were those, which passed the pre-qualification bidding currently being held by Conoco.
The source said Conoco would build a 100-kilometer pipeline to send gas from its gas fields in West Natuna to the Duyong platform in the Malaysian waters owned by Malaysian state oil and gas company Petronas.
The gas pipeline project is part of the gas sale and purchase deal to be signed by Pertamina and Petronas. Both companies had signed preliminary agreements on the gas sales and purchase and expected to clinch a deal in the near future.
Under the deal, Conoco, through Pertamina, will supply a total of 1.5 trillion cubic feet of gas to Petronas for 20 years from 2002.
The source said Conoco will first develop the Keong and Kijang fields in the Block B production sharing contract (PSC) area to supply Petronas' gas needs. (Alex)