Pertamina, Singapore to sign South Sumatera-Singapore gas deal Jan 2001

Indonesian state oil company Pertamina will sign an agreement with Singapore's Gas Supply Private Ltd. in early January next year to supply natural gas for 20 years beginning in 2003.

The company's director for exploration and production Gatot K. Wirayuda tol Petromindo.com "The deal will be signed in January and the pipeline should be ready two years after."

Pertamina will initially pipe 100-150 million cubic feet per day (mmcfd) of natural gas to Gas Supply Private, a wholly owned subsidiary of Singapore Power, with supplies eventually rising to a peak of 350 mmcfd.

The gas will be supplied under three production sharing contracts (PSCs) in Sumatra operated by Gulf Indonesia Resources and Sante Fe (Snyder).

The sub sea pipeline, estimated to be 320 kilometers long, will connect Sakernan in south Sumatra to Batam Island and eventually Singapore.

Pertamina had earlier estimated the investment for the project at $1 billion - $700 million to develop gas fields and gas plants and $300 million to build the pipeline.

The pipeline development would be under state gas company PT Perusahaan Gas Negara's supervision.

The deal will be the second signed between Indonesia and Singapore after Sembawang Gas's 22-year agreement to import 325 mmcfd of natural gas through a 640-km pipeline from the giant West Natuna field.

The gas sales agreement was initially to be signed on November 15.

Gatot Did not reveal the reason for the delay (alex/epin)