Release: MedcoEnergi and Pusri entered into gas sales agreement of $866.3 million
Friday, August 10 2007 - 12:15 AM WIB
(JAKARTA, August 7, 2007) -- PT. Medco Energi Internasional Tbk, through its wholly owned subsidiary, PT. Medco E&P Indonesia, has signed a Gas Sales Agreement (GSA) with PT. Pupuk Sriwidjaja (Pusri), the largest Fertilizer Plant owned by the Government of the Republic of Indonesia, located in South Sumatra.
As stated on the GSA, the Company will supply a total volume of 259,200 BBTU for a period of 15 years, commencing on 1 January 2008 with a total contract value of USD 866.3 million. In average, gas to be delivered would be 45 BBTU/day with average price of USD 3,586/MMBTU (based price of USD 3,00/MMBTU with escalation price of 2.5% per year).
The gas supply is originating from the Company’s gas fields in the South & Central Sumatra Extension (SSE) blocks, and channelled through a Pertamina’s 130-km pipeline to PUSRI’s plant in Palembang.
Lukman Mahfoedz, the President Director of Medc E&P, said: “The higher price of gas in the GSA would increase Medco E&P’s contribution to MedcoEnergi’s consolidated revenues starting 2008.”
Rashid I. Mangunkusumo, the Corporate Growth Director of MedcoEnergi added: “We are pleased that we could continue our gas supply to PUSRI’s Fertilizer Plant. It means that MedcoEnergi could continue supporting the Government of Indonesia to provide fertilizers to the farmers. (end of release)