Pearl, Total sign gas sales deal with PKT
Monday, June 20 2011 - 04:33 PM WIB
UAE-based oil, gas firm Pearl Oil and Total E&P Indonesie on Monday signed gas sales agreement with East Kalimantan fertilizer maker PT Pupuk Kalimantan Timur (PKT).
Under the deal, Pearl and Total will supply gas from Pearl-operated Sebuku PSC block offshore East Kalimantan and Total-operated Mahakam PSC block also in East Kalimantan to PKT for 10 years starting 2012.
Both blocks will supply a combined volume of 85 BBTUD or about 247 BCF for the whole contract period. Gas will be sold according to pricing formula which is tied to international price of urea and ammonia fertilizer.
Gas from Sebuku and Mahakam will be used as feed for PKT?s plant expansion (Unit 5) which will become onstream in 2014. Between 2012 and 2014, gas will be used to feed Unit 5, which gas contract will expire in 2011. (godang)