Gulf to export gas to Singapore in three years
Thursday, November 9 2000 - 07:30 AM WIB
Oil and gas company Gulf Indonesia Resources said it would start exporting natural gas to Singapore from South Sumatra in three years.
The company said in a meeting with South Sumatra's governor Rosihan Arsyad on Wednesday that the company would send between 150 and 350 million cubic feet of gas per day (MMCFD) to Power Gas of Singapore, local daily Sriwijaya Post reported.
The company told the governor that it planned to sign a deal with Power Gas this month. If the plan materializes, the company will start construction works at its gas fields in the village of Suban, Babattoman district, Musibanyuasin (Muba) regency next year.
The construction works are expected to complete in 30 months that the company may start exporting gas to Singapore in three years.
Company vice president for administrative affairs Supramu Santosa said during the meeting that American oil and gas company Santa Fe, which is operating in the neighboring province of Jambi, will also take part in the natural gas exportation.
Supramu further said as part of the deal with Power Gas, state gas distribution company PT Perusahaan Gas Negara (PGN) would build a 400-kilometer pipeline worth about US$400 million from Grissik in South Sumatra to Singapore through Batam Island.
Gulf will build a 80-kilometer pipeline linking Suban to its gas processing plant in Grissik, Supramu said.
Both PGN and Gulf will invest a combined $500 million for the pipeline project, he said.
According to Supramu, Gulf now produces 85,000 barrels of oil equivalent per day, including 25,000 barrels of oil per day and 290 million cubic feet of gas per day.
Supramu said the company was committed to carry out community development, noting that the company had financed the construction of a top quality high school in Muba, provided scholarship for students and carried out a number of socio-economic programs.
He said the company did not only enrich itself but also the government, which accepts 85 percent of the company's oil revenue and 65 percent of its gas revenue. (*)