Medco, Total sign gas supply agreements with buyers

PT Medco E&P Indonesia and Total E&P Indonesie on Wednesday signed agreements for the supply of natural gas to their buyers in South Sumatra and East Kalimantan, according to upstream authority BP Migas.

BP Migas said in a statement that Medco had signed a Heads of Agreements (HoA) with PT Mitra Energy Buana for the supply of some 6.8 trillion British thermal units (TBTU) of gas for a six and half year period starting 2008. Meanwhile, the other agreement is a Memorandum of Understanding (MoU) with PT Petromuba for the supply of natural gas to a proposed power plant in Sekayu of the Musi Banyuasin regency.

Meanwhile, Total also signed two agreements with state-owned electricity firm PT PLN. Under a HoA, Total will supply a total of 8.25 TBTU of natural gas to an oil/gas fired power plant in Bontang for a 10-year period starting 2007. The other agreement is a Memorandum of Understanding (MoU) for the supply of natural gas to a proposed power plant in Balikpapan.

BP Migas also said aside from these agreements, several gas supply contracts are still being negotiated, including an agreement for the gas supply to PT Pupuk Kujang in Cikampek and other industrial markets in West and East Java. (godang)