Pertamina, Petronas sign S. Sumatra - Malaysia gas supply accord

State oil and gas firm Pertamina and Malaysia?s national petroleum company Petronas on Thursday signed a memorandum of understanding to supply natural gas to Malaysia from South Sumatra under a 20-year contract starting from 2005.

The gas supply accord entails delivery of 100 million cubic feet per day (MMCFD) of gas in 2005, and the volume will be increased to 300 MMCFD in 2006.

Pertamina president director Baihaki Hakim and his Petronas counterpart Tan Sri Dato Seri Azizan Zainul Abidin signed the accord in Tampak Siring, Bali.

The gas for Malaysia will come from the fields operated by Pertamina?s production sharing contractor PT Gulf Indonesia Resources, a subsidiary of Conoco Canada Resources.

The signing of the agreement took place immediately after President Megawati Sukarnoputri and Malaysian Prime Minister Mahathir Mohamad jointly inaugurated the first delivery of natural gas to the Duyong gas platform offshore Peninsular Malaysia from Indonesia?s West natuna field which is operated by Conoco Indonesia Inc. Ltd, a unit of US energy giant Conoco Inc. Ltd. The gas delivery ceremony took place in Tampak Siring. (godang)