PGN to sign HoAs with Hess, Medco and Kodeco

State gas distribution firm PGN said Thursday it would sign Heads of Agreements with US oil firm Amerada Hess over gas supply from the latter?s Jambi Merang gas block in Jambi.

?Hopefully we can sign the HoA in October,? PGN director Nur Subagyo said.

Under the HoA PGN would contract to buy 50 MMCFD of gas, ramping up to 100 MMCFD for 10 years.

He said gas from the block would be sold to electricity firm in Jambi, pulp and paper plant in Riau and the excess would be piped to Batam.

Jambi Merang is located onshore Sumatra and contains the producing Gelam Field and the Pulau Gading and Sungai Kenawang fields which are currently in the pre-development stage. Hess has 25 percent interest in the block, while HK-based Pacific Oil& Gas and state oil and gas firm Pertamina hold 25 percent and 50 percent interest, respectively.

Elsewhere, Nur Subagyo also said that PGn is also preparing HoA signing with Medco Energi and and Kodeco. Medco would supply 50 MMCFD of gas for 10-15 years to PGN from its Lematang PSC in South Sumatra while Kodeco would also supply similar volume of gas from its Madura block offshore East Java (godang)