Correct: Pertamina, Medco to sign C. Sulawesi gas deal

(Correction in the first paragraph. The deal will be signed Thursday, not Wednesday)

State oil, gas company PT.Pertamina and IDX-listed oil, gas firm will sign Gas Sales Agreement (GSA) to sell gas from Senoro-Toili and Matindok blocks to Donggi-Senoro LNG (DSLNG) proposed plant in Central Sulawesi on Thursday.

Pertamina Vice President Director Iin Arifin Takhyan said that gas would be sold to DSLNG for a period of 15 years with Senoro-Toili would supply 250MMCFD and Matindok to supply 85MMCFD. Total combined volume would reach 1.7TCF.

Senoro-Toili block is jointly operated by Pertamina and Medco, while Matindok block is operated by Pertamina. DSLNG is 51 percent owned by Japanese firm Mitsubishi Corp. Pertamina owns 29 percent stakein the LNG plant and Medco 20 percent.

Lukman Mahfoedz, a Medco director said DSLNG would pay US$9.75 per MMBTU if Japan Cocktail Crude price reached US$100 per barrels.

DSLNG will build a 2-MTPA LNG plant with operations seen in 2012. DSLNG will sell its LNG production to Japanese firms Chubu Electric and Kansai Electric Power. (bernard)