PGN says no formal talks yet with ConocoPhillips on additional gas supply

State gas distribution firm PGN said on Thursday it had yet engaged in formal negotiation with US firm ConocoPhillips regarding gas supply from Corridor Block?s Suban 3 gas field.

The company said in a statement to the Jakarta Stock Exchange that thus far, discussions with ConocoPhillips were informal in nature. PGN Corporate Secretary Widyatmiko Bapang said that PGN was not yet informed about gas volume that could be delivered from the field.

PGN was commenting on media report that it had started gas supply negotiation with ConocoPhillips.

ConocoPhillips in its presentation on March 14, 2007, said that Suban 3 would only start delivering gas after 2011.

Bapang said that PGN needed at least 250MMCFD of supply to be able to commercially go on with plan to build 350-km pipeline from Duri in Riau to North Sumatra. ?Development of the pipeline would be started only after minimum level of gas supply is secured,? he said.

ConocoPhillips is the operator of Corridor Block with 54 percent working interest. The company had commenced production from Suban phase 2 in December 2006. Gas from the field will be supplied to PGN through PGN?s South Sumatra to West Java pipeline. (alex)