Santos supplies gas to 2 BUMDs in East Java

Santos Sampang Pty Ltd, a subsidiary of Australia?s Santos Ltd, has signed an agreement to supply 20 billion British thermal unit per day (BBTUD) to two East Java provincial government owned companies (BUMDs), the upstream oil and gas regulator BPMIGAS said.

The regulator said in a press statement published in its website that the agreement was signed on December 30, 2011.

Under the deal, Santos will supply 17 BBTUD of gas to PT Sampang Mandiri Perkasa and 3 BBTUD of gas to PT Pasuruan Migas.

Santos Sampang is the operator of Wortel gas field in East Java. ?The gas from Wortel field is expected to come onstream at end January or early February (2012),? said President and GM Santos Indonesia Marjolijn Wajong.

The two local companies will, in return, sell the gas to PT Indonesia Power, a subsidiary of state electricity company PT PLN.

Deputy Head for Evaluation, Assessment and Legal of BPMIGAS, Lambok H. Hutauruk, said the agreement shows commitment of oil and gas producers in East Java to meet energy needs of consumers in the region. All of gas produced in East Java, he said, has been delivered to consumers in the East Java area.

Edited by Roffie Kurniawan