Kondur to supply gas for BSP power plant

Kondur Petroleum SA, a business unit of PT Energi Mega Persada (EMP), has signed an agreement to sell gas to PT Bumi Siak Pusako (BSP) which will use the gas as the main fuel for the company?s power plant in Riau.

PT EMP?s Senior Manager for General Affairs, Herru Hardono, said that the agreement on the sales of gas to BSP had been signed. BSP will receive 8.2 million British thermal unit (mmbtu) under the sales and purchase agreement, while the price is fixed at US$4.94 per mmbtu.

He said that the gas would be delivered through the Kuat Gas Plant pipeline from Kondur?s gas field. ?Gas will be then transmitted to the power plant through a 26-kilometer pipeline which will be built by Kondur,? he added.

Kondur is the operator of the Malacca Strait block, which covers an area of 55,000 sq km.

Meanwhile, Jusmady Jusuf, Director of PT BSP, said that gas from Kondur would be used as the fuel for the company?s power plant which has a capacity of 40 megawatt. The power plant is now under construction in the company?s Zamrud oil field in Siak regency, Riau.

The operation of the power plant is expected to support exploration and production activities at the Coastal Plain Pekanbaru block operated by PT BSP, which is owned by the local government. (*)