Medco, Total to sign gas supply agreements with buyers today

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

Amir told Petromindo.Com that Medco will sign heads of agreements (HOAs) with Petromuba and Mitra Energi Buana to sell gas to the latter firms. Meanwhile, Total will sign two gas sales agreements with state-owned electricity firm PT PLN. He, however, did not provide details.

Medco spokesperson Aditya Mandala confirmed Wednesday that Medco will sign agreement with Petromuba for the supply of 2.1 billion cubic feet (BCF) for a three-year period from 2007 to 2010 and with Mitra for the supply of some 6 BCF of gas for six years from 2007 to 2013.

Meanwhile, a credible source said that Total will sign agreement to supply 2 million cubic feet per day (MMCFD) of gas from 2007 to 2017 for PLNs' gas-fired power project in Bontang, and another agreement for the supply of 20 MMCFD between 2008-2017 for the power project in Balikpapan. (Godang)