PLN, Salamander sign C. Kalimantan gas supply deal
Tuesday, June 28 2011 - 03:15 AM WIB
Indonesian unit of UK firm Salamander Energy Plc on Tuesday signed gas sales agreement with state electricity firm PT PLN (Persero) where the former will sell gas from Bangkanai PSC block onshore Central Kalimantan to PLN?s power plants in Kalimantan.
Under the deal, Salamander will supply 20 BBTUD of gas from Karendan gas field for 20 years starting 2013. PLN will pay US 4.79 per MMBTU with 3 percent per annum escalation.
Salamander is the operator of Bangkanai block with 69 percent interest.
According to report from Sound Oil plc, which has 5 percent interest in the block, Karendan has 133 BCF of reserves, 55 percent of which has been committed to PLN. (godang)