ExxonMobil hopes to clinch agreement to sell E. Java gas by year end

U.S. energy giant ExxonMobil Corp. hopes to reach a definitive agreement with PT Indonesia Power by the end of the year on the supply of gas to the latter's power plant in East Java.

The American firm is still in negotiation to supply natural gas from its Madura Strait production sharing contract (PSC) gas field in East java to Indonesia Power?s Grati 766-MW open and combined cycle power plant in Pasuruan. Indonesia Power is the power generating arm of state owned electricity firm PT PLN.

Abdul Kader Razak, ExxonMobil Oil Indonesia Gas & Power Marketing Market Development Manager told Petromindo.Com late Tuesday that the volume ExxonMobil looked to supply was around 80-100 MMCFD starting 2008.

ExxonMobil has around 500 BCF of recoverable gas reserves in the Madura Staait PSC.(alex)