Three oil contractors to sign gas supply accord with Petronas in August

State oil and gas firm Pertamina and three oil and gas contractors will in August sign a basic agreement with Malaysia?s state energy company Petronas to supply natural gas to that country, an oil and gas industry source told Petromindo.com on Wednesday.

Natural gas for Petronas will come from several Sumatra blocks operated by Gulf Indonesia Resources, Santos Limited and Maxus Jambi Merang, the source said.

Also in August, Malaysia will start receiving 250 million cubic feet per day (MMCFD) of natural gas from West Natuna oil fields operated by Conoco Indonesia Inc. Ltd. A 96-kilometer pipeline will transmit the gas, under the 20-year contract.

Meanwhile, Pertamina expects to sign in August another memorandum of understanding with Singapore?s electricity firm Island Power to supply it with natural gas from Gulf Resources? blocks in Sumatra, the source told Petromindo.com.

The two sides are still in negotiations on the gas volume to be supplied to Island Power, said the source.

Conoco has since February supplied Singapore?s gas firm SembCorp Gas with 325 MMCFD of gas, under a 22-year contract. (Godang)