PHE seals $577m gas supply deal

PT Pertamina Hulu Energi (PHE) announced on Tuesday that its unit PHE Jambi Merang JOB has signed US$577 millions gas supply deals with three customers, including Indonesian unit of US giant Chevron Corp.

The company said Chevron Pacific Indonesia (CPI) will get 8,030 BBTU of gas under one-year contract for its oilfield in Duri. The contract is subject to annual evaluation.

PHE-Jambi Merang also signed GSA with local firms PT. Pembangunan Kota Batam and PD. Pertambangan dan Energi Propinsi Sumatera Selatan under which it will supply 38,309 BBTU and 48,400 BBTU of gas, respectively. Contracts for both companies will expire in February 9, 2019.

PHE said it has also signed GSA with state electricity firm PT PLN (Persero), which will receive most of the gas produced from Jambi Merang block. Gas for PLN will be piped to West Java to help fueling Muara Tawar power plant. According to the release, PLN will receive 85 BBTUD of Jambi Merang gas.

First production from the block is expected on December 10, PHE said.

The Jambi Merang block, which is located onshore South Sumatra will produce 60MMCFD of gas in the first phase, ramping up to 120MMCFD in July 2011.

PHE has 50 percent interest in Jambi Merang with Canadian oil, gas firm Talisman Energy and Hong Kong-based firm Pacific Oil & Gas equally own the balance. (godang)