Mega Persada to sign MoU with Indogas in December
Thursday, October 28 2004 - 03:35 AM WIB
Oil and gas company PT Energi Mega Persada Tbk will sign a memorandum of understanding (MoU) in December with local gas trading company PT Indogas Raya Utama for the sale of gas in East Java province, the Investor Daily Indonesia newspaper reported in its Thursday edition.
Though the total volume of the gas to be sold is still under negotiations, it was already decided that Mega Persada will supply gas from its subsidiary Lapindo Brantas at a price of between US$2.65 -$2.8 per million cubic feet (MMCF).
?How much the volume will be is being discussed. But what is clear that it will be long-term project for a minimum of five years,? Mega Persada director of finance Nazamudin Lathief told the paper on Wednesday in Jakarta.
Lapindo Brantas now produces 80 million cubic feet per day of gas from its Brantas PSC block in the province, which is believed to contain between 70 and 187 billion cubic feet of gas. (*)