Indonesia Power, ExxonMobil in talk over E. Java gas supply
Thursday, April 3 2003 - 05:43 PM WIB
Indonesian upstream authority BP Migas said US giant ExxonMobil Corp.is in talk with state power generating firm PT. Indonesia Power over possibility to sell gas from ExxonMobil-operated Madura BD PSC in East Java to Indonesia Power?s Grati 766-MW open and combined cycle power plant in Pasuruan, also in East Java.
?Talks are underway. One of the biggest hurdle is pricing,? said BP Migas vice-chairman Kardaya Warnika in an interview with Petromindo. Com late Thursday.
Indonesia Power had earlier signed heads of agreement to buy minimum of 40 MMCFD of gas for 10 years from Santos-operated Oyong field in Sampang PSC. Under the agreement, Indonesia Power would contract all gas reserves in Oyong, which is estimated to be in excess of 90 BCF. But Kardaya said Grati would require around 100 MMCFD of gas.
A source said that gas reserves in Madura BD PSC is around 600 BCF. (alex/godang)