Gulf Indonesia, PGN sign MoU to supply gas to Batam
Thursday, April 18 2002 - 01:25 AM WIB
Under the MoU, up to 50 million cubic feet per day (MMCFD) of natural gas will be supplied from the Corridor Block operated by Gulf Indonesia.
The gas would be delivered through the pipeline facilities from South Sumatra to Batam and on to Singapore that are currently under development by PGN.
The physical construction for the pipeline will commence during June 2002, with mechanical completion targeted for late 2003 and the development of Batam's distribution network should initiate accordingly.
"At the first stage, no less than 115 kilometers would be constructed, originating from Panaran offtake station," said WMP Simandjuntak, PGN president director.
Simandjuntak estimated that distribution pipeline development would cost the company US$7 million.
The parties have committed to work towards finalization of definitive agreement by August 2002.
He further said Batam gas needs could reach up to 250 MMCFD in the next few years.
Gulf Indonesia, a 72 percent subsidiary of Conoco Canada Resources, holds a 54 percent working interest in Corridor Block and is contract operator for Pertamina. Partners are Talisman with 36 percent and Pertamina with 10 percent. (alex)