Gulf Resources Indonesia to invest US$300 million per year

Oil and gas company PT Gulf Resources Indonesia (GRI) would invest at least US$300 million in the future mostly in the Musi Banyuasin area in South Sumatra, company president and CEO Paul C. Warwick.

?Gulf will continue to increase investment in oil and gas exploration in South Sumatra especially now we have signed a new selling contract with Caltex ?,? he was quoted as saying on Tuesday by the local Sumatera Ekspress daily following a meeting with provincial Governor Rosihan Arsyad.

He said that gas supply to Caltex would amount to 180 million cubic feet per day.

GRI?s oil production currently stands at 18,000 bpd, while gas at 290 mmcfd per year.

GRI has recently obtained contract to supply gas to Singapore starting 2003.

Company vice president Supramu Santoso said that GRI was also negotiating with Malaysia?s Petronas to supply to the country possibly starting 2005.

He added that GRI would supply gas to the Java Island, and to develop a pipeline network in cooperation with the state-owned gas company PGN.(*)