PRESS RELEASE - Pertamina and Singaporean firm sign gas agreement

Pertamina and Gas Supply Limited, a wholly owned subsidiary of PowerGas Ltd, initialed a detailed gas sales agreement on August 29, 2000. It is expected that this agreement together with its supporting agreements including gas supply and transportation will be executed on or before November 15, 2000. This agreement will be the second gas agreement signed by Pertamina and the Singaporean company.

This gas will be supply from three production-sharing contracts (PSCs) in Sumatra, which are operated by Gulf Indonesia Resource Grissik, Santa Fe Energy Resources Jabung and Gulf Indonesia Resources South Jambi. Pertamina and these three PSCs will supply 150 million cubic feet per day (MMSCFD) of gas beginning in 2003 and increasing to a peak rate of 350 MMSCFD for a total contract period of 20 years. The total contract quantity of 2.380 trillion Btu's will generate an income in excess of $7 billion.

Investment for the project is estimated at US$1 billion, comprising $700 million for the construction of the underwater pipeline linking Sumatera and Singapore.

Signed by Pertamina Senior VP Director Exploration and Production, Gatot K Wiroyudo. (*)