Indonesia and S. Korean firms to sign MoU on oil and gas projects
Tuesday, May 1 2007 - 01:12 AM WIB
State-run Korea National Oil Corporation (KNOC) and SK Corp. are to sign a memorandum of understanding (MoU) Tuesday on oil and gas exploration and production with Indonesian oil and gas firm PT Pertamina.
The three companies will collaborate on oil and gas exploration and production both in Indonesia and other countries, KNOC exploration manager Sukyeon Hwang told the Jakarta Post following a meeting with senior officials from the Energy and Mineral Resources Ministry on Monday.
During Monday meeting another Korean energy firm, E1, said it would form a joint venture with Pertamina to build an LPG (Liquefied Petroleum Gas) plant in South Sumatra
E1 representative Moon Soo Dong said the plant would have a designed capacity of 350 million cubic feet a day and would cost about US$155 million to build.
He also said construction of the plant would begin in 2008, and that it was expected to commence commercial operations in the first half of 2010.
In the electricity sector Korea Electric Power Corp. (Kepco) said that it agreed with state owned electricity firm PLN to build a gas-fired power plant in, Bojonegara, Banten with an installed capacity of 750 megawatts (MW)
The plant is scheduled for completion between 2009-2010. (*)