PGN, Bojonegoro to team up in gas distribution business

State-owned gas distribution company Perusahaan Gas Negara (PGN) will cooperate with the Bojonegoro regency administration to run gas distribution business in the regency.

The memorandum of understanding (MOU) on the gas distribution cooperation was signed by PGN's president director WMP Simandjuntak and Bojonegoro regent Muhammad Santoso in Jakarta Tuesday.

Simandjuntak said that PGN and the Bojonegoro government through its company PT Patra Asri Dharma Sejahtera would jointly build gas distribution facilities to supply gas to both households and companies in the regency.

He said that the joint gas distribution company would buy all the gas to be given to the regency as part of its production split from the Cepu oil and gas field.

Pertamina and ExxonMobil have 45 percent participating interest, respectively, in the Cepu oil and gas block. The remaining 10 percent interests are shared by Central Java and East Java Administrations, with 2.18 percent for the Blora regency, 1.09 percent for the Central Java administration, 4.48 percent for the Bojonegoro regency and 2.24 percent for East Java provincial administration. (denny)