Medco, PGN in gas supply deal

IDX-listed state gas distribution firm announced on Friday that it had signed deal with PT Medco E&P Indonesia on gas supply from the latter?s Singa field in Lematang PSC, and South and Central Sumatra PSC, both are located onshore South Sumatra..

Under the deal Medco will supply PGN 48.6 BBTU of gas from Singa field for 3 years starting first quarter of 2010 and from 20BBTU from South and Central Sumatra for 2 years starting this month.

Chairman of upstream oil, gas authority BPMIGAS said that the value of the two contract was US$ 360 million.

Priyono said gas from Medco will be used to supply power plants in Jakarta area.

A BPMIGAS source told Petromindo.Com that Medco initially planned to sell Singa gas to Chevron?s Central Sumatra PSCs to help supply gas requirement for its steam flood facilities. The source did not say why the Medco-Chevron deal did not go through. (godang)