Medco to receive $110m from Senoro Toili gas
Thursday, March 13 2014 - 01:50 PM WIB
PT Medco E&P Indonesia will receive additional revenue of US$110 million from the Gas Supply Purchase Agreement (GSPA) signed today with local ammonia producer PT Panca Amara Utama (PAU).
The GSPA which was signed in Jakarta by Medco, through its joint venture company, Joint Operating Body PT Pertamina Medco Tomori Sulawesi (JOBPMTS) which is the operator of Senoro Toili block, in Central Sulawesi, with PAU.
The GSPA is among the six gas agreements signed today.
The GSPA will generate an estimated revenue of $1.4 billion, including $550 million for the government, $370 million for the contractor. Medco will earn $110 million, said Medco's President Director Lukman Mahfoedz.
It is also agreed that the gas price will be formulated and linked with ammonia price at international market, according to Lukman
He also said that the period of the GSPA begins 30 months from the effective date of GSPA until the expiration of Senoro Toili PSC.
?Under this GSPA, JOBPMTS will supply gas, amounting to 55 mmscfd to PAU?s ammonia plant, with a total gas supply volume of 248,200 mmscf during the contract period. Gas will be supplied from Senoro-Toili Block in Central Sulawesi province, with the first gas delivery slated by the fourth quarter of 2016,? he said.
Lukman added that Medco is committed to supplying gas to the domestic market to meet the demands of fertilizer and electricity plants.
Editing by Johannes Simbolon