Petronas, Petrogas sign gas sale contract

By Godang Sitompul

Petronas Carigali Bhd signed a sale and purchase contract of gas from its Bukit Tua field in Ketapang block with PT Petrogas Jatim Utama on Thursday.

Both companies agreed that the contract would last for five years at the price of US$5.5 per MMBTU, with an escalation of 3 percent per year..

Upstream Authority BPMIGAS Operational Deputy Rudi Rubiandini said in Jakarta on Thursday that the source of the gas would be from Bukit Tua field with a principle of 'as is' and gas delivery within five years,

He said that estimated volume of gas to be delivered in first year would be 12.25 mmscfd, in 2nd year 29 mmscfd, in 3rd year 50.81 mmscfd, in 4th year 18.70 mmscfd , and in fifth year 8.65 mmscfd.

According to him, the delivery will be started no later than 30 months after the gas sale and purchase agreement made effective for the period of five years. The point of delivery will be the location of Onshore Receiving Facilities (ORF) in Maspion Industrial Zone of Gresik, East Java.

Editing by Benget Besalicto Tnb.