Medco E&P signs HoA to sell Senoro-Toili gas
Thursday, March 31 2005 - 02:15 PM WIB
PT Medco E&P Indonesia on Thursday signed a Head of Agreements with PT Panca Amara Utama (PAU) for gas supply of around 100 million cubic feet per day (MMCFD) from Senoro-Toili block in Central Sulawesi Province to the latter?s fertilizing plant, which is planned to be built in the same Province.
Medco E&P vice president of gas marketing Pudjo Suwarno told reporters that PAU had agreed to buy gas at a price of US$2 per million British thermal unit for a 15-year period starting 2008.
Pudjo said both parties were expected that the Gas Sales Agreement could be signed by July this year.
Senoro-Toili block, which has an estimated 1.5 trillion cubic feet of proven gas reserves, is jointly operated by Medco E&P and state-owned oil and gas firm PT Pertamina.
Earlier, Medco E&P signed a memorandum of understanding with state-owned gas transmission PT PGN for supply of up to 350 MMCFD of natural gas for 20 years. (godang)