Singapore agrees to review Indonesian gas supply deal
Monday, November 27 2000 - 04:00 AM WIB
The Indonesian government received last week the endorsement of the Singapore authorities to review its $8 billion natural gas supply contract as part of plans to issue bonds to raise $500 million, according to a report from the Organization of Petroleum Exporting States news agency, OPECNA.
Indonesia"s Coordinating Minister for Economy, Finance and Industry Rizal Ramli stated that Singapore had agreed to review the 22-year contract-inked in January to export some 325-350 million scfd of natural gas from the South China Sea Natuna field-in order that it might be used as "collateral to raise much needed funds" by Indonesia.
Oil and Gas Journal reported that the two countries" governments were also working on a second, similar deal that would see natural gas exported from fields in South Sumatra.
Ramli noted that if the contract with Singapore was successfully used to back the bonds, Indonesia would also consider approaching its other major liquefied natural gas buyer, Japan, with a view to a similar future deal. (*)