Indonesian gas producers and buyers sign US$4.3 billion agreements
Friday, July 9 2004 - 09:26 AM WIB
The agreements were signed in East Java?s provincial capital of Surabaya in a ceremony attended by among others Minister of Energy and Mineral Resources Purnomo Yusgiantoro, chairman of upstream authority BP Migas Rachmat Sudibyo and East Java?s Governor Imam Utomo.
The 13 agreements include three gas sales agreements (GSA) signed by American energy firm ConocoPhilips. The first GSA was signed by the American firm with state gas distributor PT PGN for the supply of 50 million cubic feet per day (MMCFD) of gas from the American firm?s gas fields in Grissik, South Sumatra to PGN?s gas terminal on the industrial island of Batam. The supply will last 15 years, starting from 2005.
The second GSA was signed by the American firm for the supply of 0.8 MMCFD of gas from Grissik to Medco Energy?s oil field in South Sumatra. The second GSA was signed by the American firm with state owned energy firm Pertamina for the supply of 0.76 MMCFD of gas from Grissik to Pertamina?s oil field also in South Sumatra. The gas will be used to lift oil by Medco and Pertamina. The supply will last five years, starting from late this year.
The other agreement was the Principle of GSA, which was signed by state owned electricity firm PT PLN and Pertamina for the supply of gas from Pertamina?s Gundih gas field to PLN?s Tambak Lorok power plant in Central Java. Pertamina will supply a total of 600 billion cubic feet of gas throughout the contract period starting from 2007.
Besides, there were four head of agreements (HOA) signed on Friday. The first HOA was signed by PLN and local firm PT Kalila Energy for the supply of gas from the latter?s Bentu gas field in central Sumatra to the power firm for 15 years starting late this year.
The second HOA was signed by South Korean firm PT Kodeco Energy for the supply of gas to PGN in East Java for seven years starting from 2005.
The third HOA was signed by JOB Pertamina YPF Jambi Merang for the supply of gas to PT Persada Kria Dwiguna for 13 years starting from 2006. Persada Kria, which is controlled by the Bakrie Group, is a gas distributor.
The fourth HOA was signed by Kodeco for the supply gas to Petrokimia Gresik in East Java for seven years starting from 2006.
Aside from the above agreements, there were five MOUs signed on Friday. The first MOU was signed by Medco E & P Lematang for the supply gas to PGN in West Java for 15 years starting from 2009.
The second MOU was signed by ConocoPhilips for the supply of gas to PGN in West Java for 10 years starting from 2007.
The third MOU was signed by American firm American firm Amerada Hess for the supply of gas to Petrokimia Gresik for 21 years from 2006.
The fourth MOU was signed by BP Java Limited for the supply of gas to state owned fertilizer firm PT Pupuk Kujang.
The fifth MOU was signed JOB Pertamina Medco Energy for the supply of gas to the power plant in Madura owned by PT Pembangkitan Jawa Bali, a subsidiary of PLN. The supply will last 15 years. (Alex)