Petronas’ gas commitment to PLN will not be affected by Ambalat case

Malaysia’s Perusahaan Petroleum National Berhad (Petronas Carigali) is still committed to supply gas to gas-fired power plant at Tambak Lorok Semarang belonging to Indonesia's state owned PT Perusahaan Listrik Negara (PLN) despite border dispute between the two countries over a martime area, the Investor Daily Indonesia reported in its Monday edition.

“We have to wait for the signing (of the agreement). Currently, it is under process to get approval from oil and gas industry’s regulating body (BP Migas),” PLN’s primary energy and power generation Ali Herman Ibrahim told the Investor Daily last week in Jakarta.

According to Ali Herman, there is no change in the total volume and value of the transaction.

Earlier, Ali Herman said that Petronas has agreed to supply 145 million cubic feet per day of gas to Tambak Lorok plant from Kepodang gas field of the Muriah block offshore Central Java.

He said both parties have agreed on the sale and purchase price of US$2.78 per million cubic feet (mile-mile British Thermal Unit). The supply will begin in 2007 and will last for 10-12 years.

Meanwhile, Malaysian Prime Minister Abdullah Ahmad Badawi said relations with Indonesia have not been strained by a dispute over an offshore oil field called the Ambalat block, news reports said Saturday.

"The relationship is good and has not turned into a level of crisis," Abdullah was quoted as saying by the New Straits Times. "It is still under control."

Abdullah was speaking after being briefed on the issue at a regular meeting of his United Malays National Organization's supreme council on Friday.

The dispute concerns the Ambalat blocks, an oil- and gas-rich area in the Sulawesi Sea off the eastern coast of Borneo island.(*)