Gas contract deals worth US$3.1 billion signed
Wednesday, April 25 2007 - 09:21 AM WIB
Upstream oil and gas regulatory body, BP MIGAS facilitated Wednesday the signing of several gas purchase and sale contracts with a total volume of 738.52 trillion British thermal unit (TBTU) worth US$3.1 billion.
The contracts signed in Jakarta Wednesday were aimed to meet the gas needs from power plants, fertilizer plants, oil refineries and other industries.
BP MIGAS’ head Kardaya Warnika said that the contracts would ensure the sufficient supply of gas domestically. “Around 300 TBTU will be used to meet the gas need from power plants and the remainders will be used to meet gas needs from fertilizer plants, refineries and other industries in West Java,” he said.
The contracts include a 10-year-term contract with total volume of 343.4 TBTU worth US$1.18 billion signed by the joint operation body (JOB) of state owned oil and gas company PT Pertamina and American firm Hess as producer and state electricity firm PT Perusahan Listrik Negara (PLN) as buyer. The gas will be sourced from gas fields in Jambi Merang block.
Under another contract, Pertamina EP, the upstream subsidiary of Pertamina, is committed to selling its gas with total volume of 326.03 TBTU valued at US$1.131 billion to state-owned fertilizer company PT Pupuk Sriwijaya for five years.
Pertamina EP has also signed a contract with PT Titis Sempurna. Under the deal, Pertamina EP is committed to selling gas with total volume of 2.19 TBTU for three years.
PT Chevron Pacific Indonesia, the subsidiary of American energy giant Chevron Corp, signed a six-year term contract with Pertamina that allows the latter to buy gas with total volume of 65 TBTU worth US$357.5 for its refinery in Balikpapan, East Kalimantan. The gas will be sourced from Chevron's Seturian gas field.
Pertamina EP also signed contracts to sell gas to PT Pertiwi Nusantara Resources with total volume of 1.2 TBTU for three years, and with PT Energi Kompresindo with total volume of 0.7 TBTU for three years. The gas will be sourced from the company’s gas fields including Semanggi field, East Kandanghaur, Pegaden and Sukamandi fields in West Java (godang)