Premier gas sales to Malaysia to generate US$446m income for govt: Pertamina

The government would receive a total revenue of US$446.4 million from the future gas supply by state oil and gas company Pertamina?s production sharing contractor Premier Oil of Britain from its fields in the West Natuna area to Malaysia, Pertamina said Wednesday.

?The government?s revenue is estimated at US$446.4 million throughout the contract period of ten years,? Pertamina?s director of production sharing management Iin Arifin Takhyan said

Iin said Pertamina was negotiating with Malaysian state oil and gas company Petronas on the contract which will enable Premier to supply Petronas with 100 million cubic feet of gas per day (MMCFD) for ten years starting from 2004.

The gas will be pipelined from Premier?s Natuna Block A production sharing contract (PSC) area in the South China Sea to the Angsi platform owned by Petronas in the eastern part of Malaysia.

The pipeline used to transmit the gas would reach between 98 and 100 kilometers in length, Iin said.

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

He said he was optimistic both companies would reach a deal ?in the next two months?.

Premier is 25 percent owned by Petronas.

The sale of Premier gas will become the second gas deal to be signed by Pertamina and Petronas on the supply of gas to Malaysia from West Natuna.

The first deal was signed by both companies several months ago, allowing Pertamina?s production sharing contractor Conoco Inc of the United States to supply Petronas with between 150 and 350 MMCFD of gas for 20 years starting in 2002.

The sale of Conoco gas is expected to generate $5.7 billion in revenue to the government throughout the 20-year contract period. (Godang)