PGN reaches deal with ConocoPhilips

State-owned gas distribution company PT Perusahaan Gas Negara (PGN) has reached agreement with American firm ConocoPhilips to extend "interruptible" gas supply contract.

?We have reached agreement to extend the contract that expires in October this year,? said PGN corporate secretary M. Wahid Sutopo Wednesday, referring to the Interruptible Gas Purchase Agreement (IGSA). He did not provide details.

ConocoPhilips and PGN began negotiation for the extension of the IGSA in May 2009. The gas from ConocoPhilips's fields in central Sumatra will be used by PGN to supply customers in Batam, Jambi, and Riau Islands. The two sides were supposed to reach a deal before September 2009.

ConocoPhilips and PGN first signed the IGSA on September 11, 2007, which is only valid for two years.(*)