Medco units will sign contracts with two gas buyers

Two Medco E&P Indonesia's subsidiaries - JOB Pertamina-Medco Madura Pty Ltd, and PT Medco E&P Lematang are set to sign gas sales contracts with two buyers namely PT Pembangkit Jawa Bali and PT Perusahaan Gas Negara (PGN) in Surabaya Friday (today).

Medco's Public Affairs Manager Aditya Mandala said in Jakarta on Thursday that under the proposed contract, JOB Pertamina-Medco Madura would provide a gas supply of about 20 million metric standard cubic feet per day (MMSCFD) to Pembangkit Jawa-Bali's power plant in Pamekasan, East Java for 15 years beginning 2006, with total contract value of US$260 million.

The gas will be supplied from the company's Sebaya field, part of the Madrua gas block in Pamekasan, East Java.

Meanwhile, PT Medco E&P Lematang would supply 100 MMSCFD to PGN's gas receiving terminal in Pagardewa, South Sumatera. The US$770 million contract will last for 11 years beginning 2006.

PGN is currently developing an inter-island gas pipeline to transmit the gas from the Pagardewa receiving terminal to Cilegon, Banten.

PT Medco E&P Indonesia, formerly known as PT Exspan Nusantara, has 14 oil and gas concession areas located in eight provinces and 22 regencies. (godang)