Premier eyes gas deal with Petronas in two months

State oil and gas company Pertamina is expecting to sign a deal with Malaysian state oil and gas company Petronas in two months, allowing British oil and gas firm Premier Oil to supply Petronas with natural gas from the West Natuna area in the South China Sea, a Premier Oil executive said Tuesday.

Premier Oil Indonesia?s president Robin Allan said Pertamina and Petronas had recently signed the so-called ?confidentiality agreement? for the gas supplies.

?We are optimistic that the (gas sales) agreement would be signed in the next two months,? Allan said on the sidelines of a workshop on the British-Indonesian oil and gas cooperation.

He said under the planned contract, Premier would supply 100 million cubic feet of gas per day (MMCFD) from its Block A production sharing contract (PSC) area in West Natuna. He did not however specify the period of the contract.

Petronas owns a 25 percent stake in Premier.

The gas deal will become the second to be signed by Pertamina and Petronas for the gas supplies from the West Natuna area.

Several months ago, Pertamina and Petronas signed a deal allowing Pertamina?s contractor Conoco Inc of the United States to supply natural gas from its Block B PSC, which is also located in West Natuna. (Alex)