Pertamina to sign gas deal with Singapore Power
Monday, August 7 2000 - 06:15 AM WIB
State oil and gas company Pertamina said on Monday it expected to sign a gas sale-and-purchase deal with Singapore Power in November this year.
"The sales contract is currently under negotiation and to be completed by the end of August 2000," Pertamina's exploration and production director Gatot K. Wiroyudo told reporters.
He said under the deal, Pertamina and its production-sharing contractors would supply Singapore Power with 350 million cubic feet of gas per day (MMCFD) for 20 years.
The gas will be transmitted from the gas fields owned by Santa Fe Energy Resources Jabung, Gulf Indonesia Resources Grissik and Gulf Indonesia Resources South Jambi in the southern and central part of Sumatra through underwater pipelines.
He said first gas is expected to be on stream by mid-2003. A total investment of US$1 billion would be spent for the project, including $700 million for the development of the gas fields and gas plants and $300 million for the construction of pipelines.
He said the gas deal was expected to generate US$7 billion in revenue for the Indonesian government.
Aside from the project, Pertamina also planned to supply natural gas from west of the Natuna islands in South China Sea to Singapore.
Pertamina and its West Natuna contractors, that is Conoco Inc., Gulf Resources and Premier Oil signed the 22-year gas sale-and-purchase agreement on Jan. 15, 1999.
Under the agreement, the first gas will be on stream in April 2001 but Gatot said the transmission of the first gas could be done four months ahead of schedule due to the quick construction of the gas pipeline.
Pertamina and its contractors would send 325 MMCFD of gas to Sembawang for 22 years, which is expected to generate $7 billion in revenue for the government.
Gatot also said Pertamina is negotiating with Malaysia's state oil and gas company Petronas to supply natural gas from Conoco's Belana Block (Block B) to Petrona's gas platform at the Duyung field off the coast of Malaysia.
The Duyung field is about 40 kilometers away from the Belana Block, he said
He said Pertamina expected to sell 250 MMCFD of gas to the company for 20 years. (*)