Pertamina, Husky sign MoU on gas supply from E. Java block

State-owned oil and gas firm PT Pertamina had signed memorandum of understanding (MoU) with Canadian oil firm Husky Energy to obtain gas supply from the latter's Madura BD block offshore East Java.

Pertamina?s vice president Iin Arifin Takhyan said that the MoU had been signed but he did not provide details. ?True, there is MoU between Pertamina with Husky,? he said.

Petromindo?s source said that Husky will be supply gas at about 100 MMSCFD to Pertamina?s gas pipeline linking Gresik, East Java to Semarang, Central Java.

In March 2006, downstream oil and gas regulator BPH Migas awarded Pertamina with a special right to develop and operate a Gresik-Semarang 250-km pipeline, designed with the capacity of flowing 350-500 MMSCFD of gas.

Husky has a 100 percent interest in Madura BD Block, which has proven and probale reserves of 360 BCF. Husky is reportedly negotiating with state electricity firm PLN to supply gas to the former?s proposed 500-MW Pasuruan power plant in east Java and also with state gas distribution firm PGN. (godang)