Energi Mega signs US$2.5 billion gas deals

Publicly-listed oil and gas producer Energi Mega Persada (EMP) signed on Thursday several gas sales and purchase agreements that are expected to generate US$2.5 billion in revenue for the firm.

EMP will supply a total of 760 trillion British thermal unit (TBTU) of natural gas from its gas fields in East Java.

The first sales and purchase agreement was signed by EMP and state electricity firm PT PLN, under which the former will supply the former with a total of 12.7 TBTU of natural gas from its Rancak Nimbang and Pagerungan fields over a period of three years starting in September 2005.

EMP also signed two agreements with gas distribution company PT PGN, under which the former will supply the latter with 6.39 TBTU of natural gas for six months until the end of 2005 from the Pagerungan field and 8.18 TBTU over a period of two years starting this year from the Rancak Nimbang field.

EMP also signed a deal to supply petrochemical firm Petrokimia Gresik with natural gas from the Rancak Nimbang, Pagerungan and Terang Sirasun fields over a period of 10 years starting in the end of this year. A total of 243.27 TBTU will be delivered by EMP to Petrokimia Gresik under the deal.

During the occasion, EMP also signed three heads of agreement (HOA) to supply natural gas from its Terang Sirasun field.

Under the first HOA, EMP will supply PLN with a total of 342.20 TBTU from the Terang Sirasun field starting in 2007.

The second HOA will allow EMP to supply Petrokimia Gresik with a total of 365 TBTU of natural gas over a period of 20 years from 2007.

The third HOA was signed by EMP and gas trader Indogas Kriya Dwiguna, under which the latter will get supplies amounting to 71.08 TBTU over a period of 10 years.

During the occasion, state owned oil and gas company Pertamina signed a deal to supply natural gas for fertilizer firm Pupuk Kujang in West Java.

Upstream oil and gas authority BP Migas signed a memorandum of understanding with PLN on the possibility for PLN to buy liquefied petroleum gas (LPG) from local producers for its power plants. PLN is considering using LPG rather than diesel oil for its power plants following the shortage of the supply of the fuel on the domestic market. (Godang)

Type Of Agreement	Seller	Buyer	Volume (tbtu)	Price (USD/mmbtu)	Period (year)	Location
Gas Sales and Purchase Agreement	EMP Kangean Ltd..	PT. PLN	12,7	2,75 - 2,9	3; starting 2005	Rancak Ngimbang, Pagerungan to PT. PJB East Java
	EMP Kangean Ltd.	PT. PGN	6,39		6 months, starting 2005	Pagerungan to East Java customers
	EMP Kangean Ltd.	PT. Petrokimia Gresik Persero	243, 27		10, starting 2005	Rancak Ngimbang, Pagerungan,Terang Sirasun to Petrokimia
	EMP Kangean Ltd.	PT. PGN	8,18		2, starting 2005	Pagerungan to East Java customers
	Pertamina	Pupuk Kujang IB, West Java	48 mmscfd	2,55	3, starting 2007	Parigi to Pupuk Kujang
Head of Agreement	EMP Kangean Ltd.	PT.PLN	342,20	-	16, starting 2007	Terang Sirasun
	EMP Kangean Ltd.	PT.Petrokimia Gresik Persero	365	-	20, starting 2007	Terang Sirasun
	EMP Kangean Ltd.	PT.Indogas Kriya Dwiguna	71,08	-	10	Terang Sirasun