Pertamina, Medco approaching Japanese buyers to purchase LNG from C. Sulawesi

State oil and gas firm Pertamina and publicly listed oil company PT Medco Energi International Tbk are approaching Japanese liquefied natural gas (LNG) buyers to purchase the commodity from Senoro block in Central Sulawesi, a senior executive of Medco said on Thursday.

?We are approaching four or five Japanese LNG buyers,? Medco financial director Sugiharto said in its public expose meeting in Jakarta. He did not mention the names of the Japanese buyers.

?With Japanese element, we can find it easier to develop our financing packaging,? he added.

Pertamina and Medco have equal interest in Senoro Block, under a joint operating body (JOB) scheme.

Sugiharto further said that Pertamina was continuing to complete the drafting of head agreement with US energy giant Marathon Oil which had expressed interest to buy its gas.

Sugiharto said natural gas to be purchased by Marathon might partly come from Sonoro Block. He said Pertamina had considered to sell gas from Senoro and from its wholly owned Donggi Block under one package. Donggi Block is also located in Central Sulawesi.

An agreement signed between Medco and Pertamina obliges Medco to sell its gas from Sonoro together with Pertamina?s gas from the same block, Medco?s operation director Rashid I. Mangunkusumo.

Pertamina and Marathon had earlier signed an agreement under which Pertamina will become key supplier for Marathon?s major LNG regasification and power generation complex near Tijuana in the Mexican State of Baja California.

Medco currently has interest in 18 blocks including Sonoro Block. (leo)