Perusda Balikpapan, Vico ink MoU on Lamaru-1 gas

Perusda Balikpapan, wholly owned by the Balikpapan mayoralty administration, has signed an MoU with Vico Indonesia on gas supply from the Lamaru-1 well for power plant in the area.

The MoU, signed by Perusda Balikpapan Director Poerbawidjaya and Vico President & CEO Gunther Newcombe on Tuesday, will pave the way for the signing of gas purchasing agreement which is expected to be finalized within the next six months.

Preliminary data shows that the well has the potential to produce 1.4 mmscfd for the next 3 to 4 years, which could fuel power plant with a capacity of 5 MW.

As reported by Bisnis Indonesia, Poerba expects the price of the gas would be reasonable, citing market price range of US$5 to $10 per mmbtu.

Newcombe meanwhile said that Vico is committed to supporting the regional government to fulfill its gas needs and expects to sign the gas purchasing agreement soon.(*)