Pertamina, MedcoEnergi, Husky sign $3.7b gas sale contracts
Tuesday, August 7 2007 - 09:21 AM WIB
PT Pertamina, Medco Energi International and Husky Energy Inc. signed on Tuesday eight contracts to sell a total of 937.96 trillion British thermal unit (TBTU) of natural gas worth US$3.78 billion.
Kardaya Warnika, head of upstream oil and gas authority BPMIGAS, said state owned Pertamina signed for agreements with gas traders PT Media Karya Sentosa, PT Tossa Shakti, state owned fertilizer firm PT Pupuk Kujang and state owned steel producer PT Krakatau Steel respectively.
Pertamina’s upstream subsidiary Pertamina E&P will sell a total of 83.95 TBTU of gas from Poleng TAC field to Media Karya for six years. The gas will be supplied to power plants in Gresik and Bangkalan, East Java.
Under the contract with Tossa Shakti, Pertamina E&P will supply the firm with a total of 1.46 TBTU from Mangkang field in Kendal, Central Java for two years to meet demands from industries in Java.
As part of the deal with Pupuk Kujang, Pertamina E&P will supply the fertilizer firm’s plant in Cikampek, West Java a total of 3.05 TBTU for four months starting August 2007.
Under the contract with Krakatau Steel, which is an amendment to the previous one, Pertamina E&P will supply the steel producer a total of 204.4 TBTU.
Meanwhile, MedcoEnergi’s subsidiary PT Medco E&P Indonesia signed a contract to supply a total of 178 TBTU of gas to state owned fertilizer firm PT Pupuk Sriwijaya for 11 years.
Husky signs three heads of agreement (HoA) with PT Inti Alasindo, PT Parna Raya and state owned gas distributor PT Perusahaan Gas Negara (PGN). Under the HoAs, the Canadian firm will supply 170.4 TBTU to Inti Alasindo, 170.4 TBTU to Parna Raya and 126.30 TBTU to PGN for 20 years since 2011. The gas will provided by Husky’s subsidiary Husky Oil (Madura) Ltd.
“Husky is about to enter the commercial phase. This contractor is expected to expand market network in East Java,” Kardaya said. (Alex/Godang)
| No | Buyer | Seller | Source of gas | Form of Agreement | Length/ Start of Contract | Flow Rate (BBTUD) | Contract Volume (TBTU) | Contract Value (Million US$) |
| 1 | PT Media Karya Sentosa for power plant in Gresik and Bangkalan | PT Pertamina EP | Poleng TAC | GSPA | 6 years / 2008 | 40 | 83.95 | 340.46 |
| 2 | PT Tossa shakti | PT Pertamina EP | Mangkang and Kendal fields | GSPA | 2 years / 2008 | 2 | 1.46 | 7.30 |
| 3 | PT Krakatau steel | PT Pertamina EP | West Java's fields | GSPA Amendment | 7 years / 2007 | 80 | 204.4 | 803.83 |
| 4 | PT Pupuk Kujang Cikampek | PT Pertamina EP | West Java's fields | SKB | 4 months/ August 2007 | 25 | 3.05 | 12.50 |
| 5 | PT Pupuk Sriwijaya | PT Medco E&P Indonesia | South Sumatra Extensiion | GSPA | 11 years / 2008 | 45 | 176 | 606.70 |
| 6 | PT Inti Alasindo Energy | Husky Oil (Madura) Ltd. | Madura BD field | HoA | 20 years / 2011 | 40 | 170.40 | 734.40 |
| 7 | PT Parna Raya | Husky Oil (Madura) Ltd. | Madura BD field | HoA | 20 years / 2011 | 40 | 170.40 | 734.40 |
| 8 | PT PGN Tbk. | Husky Oil (Madura) Ltd. | Madura BD field | HoA | 20 years / 2011 | 30 | 126.30 | 543.80 |
Total |
937.96 | 3783.39 | ||||||
| Note: GSPA= Gas sales and purchase agreement; HoA= Head of Agreement; SKB = Surat Keputusan Bersama (Joint Decision Letter) | ||||||||