PRESS RELEASE: Signing of gas sales and purchase agreements and memorandum of understanding

Surabaya, 9 July 2004. BPMIGAS ? Government Executive Agency for Upstream Oil and Gas Activities, announces today that the signing of 18 (eighteen) agreements which consists of 3 (three) Gas Sales and Purchase Agreements, 5 (five) Head of Agreements, 5 (five) Memorandum of Understanding for domestic consumption, 3 (three) Memorandum of Understanding for selling LNG, and 2 (two) other MoU?s. The value of these agreements is about US$ 4.3 billion, for a total volume of 1.7 TCF (Trillion Cubic Feet) of gas.

The Signing that is witnessed by Minister of Energy and Mineral Resources Indonesia and Governor of East Java, has proved the commitment Indonesia upstream oil and gas business for domestic gas supply and hopefully would be able to mitigate the problems for industrial and power generations sector particularly in East Java Province without increasing liquid fuel subsidy consumption.

In less than 2 years, BPMIGAS has coordinated and managed 35 contracts for domestic gas sales about 8.4 TCF for US$ 22 billion. Those all, have shown more attractive climate for gas business that hopefully will encourage more confident for investors to further development for gas business in Indonesia. (end of release)

Source: BPMIGAS