Medco E&P to sign gas sales contracts with three major buyers
Thursday, April 10 2008 - 02:25 AM WIB
Under one of the sales purchase agreements, Medco E&P Indonesia, through its subsidiary PT Medco E&P Malaka will provide a total of 85 trillion British thermal unit (TBTU) of gas for 17 years from 2010 until 2026 to PLN.
In the contract worth about US$565.99 million, Medco will provide the gas from its Alur Rambong, Alur Siwah and Jalu Rayeu fields in the Block A block in East Aceh.
In the second sales purchases agreement, Medco E&P Indonesia will provide about 71.61 TBTU to PLN's power plant in Keramasan, South Sumatra for six years from 2008 until 2013.
The gas will be supplied from Medco's South Sumatra Extention (SSE) gas block. Part of the gas will be supplied to PLN's power plants in Java through PGN's South Sumatra-West Java gas pipeline.
In the third sales purchase agreement, Medco E&P Tuban through JOB Pertamina-PetroChina, would supply about 6 TBTU for three years from 2009 until 2011 to Petrokimia Gresik in East Java. In the contract worth about US$30.25 million with average selling price US$5 per MMBTU the gas will be supplied from the Lengowangi field in Tuban block, onshore East Java.
Medco E&P Indonesia wiil also renew its sales purchase agreements with its subsidiary PT Medco Methanol Banyu. Under the extended contract which is worth about US$37.53 million, Medco E&P will supply 13.65 TBTU for three years from 2008 until 2010. The gas will be provided from the Mamburungan field in the Tarakan PSC block, East Kalimantan.
In 2007, PT Medco E&P Indonesia sold a total of 40.33 million British thermal unit (MMBTU) of natura gas and about 26,909.86 tons of liquefied petroleum gas (LPG) to a number of Indonesian companies. The sales value reached US$94.24 million during the year. (godang)