Negotiation on Donggi Senoro LNG progressing well: Pertamina

Negotiation between state owned oil and gas company PT Pertamina and Japanese firm Mitsubishi on the project to develop an LNG plant in Central Sulawesi has been progressing well.

?We expect to finalize an agreement on the project in one or two months,? Pertamina?s President Director Ari H. Soemarno said on Thursday prior to the 8th Japan-Indonesia Energy Round Table in Jakarta.

Mitsubishi, Pertamina and JSX-listed PT Medco Energi International plan to jointly develop an LNG plant using gas from Pertamina?s 100 percent-owned Donggi block and Senoro-Toili block, which is equally owned by Pertamina and MedcoEnergi. Both blocks have combined certified reserves of 3.7 trillion cubic feet.

Earlier, Pertamina CFO Frederick Siahaan said that the consortium will seek US$800 million loan to finance the project, which is projected to cost $1.2 billion. (Godang)