Total, Inpex sign E. Kalimantan gas deal
Monday, June 29 2009 - 01:46 AM WIB
Total E&P Indonesie and its partner in Mahakam Block Inpex Corporation on Saturday signed a Gas Sale and Purchase Agreement (GSPA) with Perusda Kelistrikan dan Sumber Daya Energi Kukar (KSDE) an electricity generation firm owned by Kutai Kartanegara regency, Kaltim Post reported on Monday.
Under the deal, Total and Inpex would supply 20 MMCFD of gas starting 2011 for 20 years to KSDE?s proposed 2x40MW gas-fired power plant that would be built in Senipah.
KSDE will pay US$3.5 per MMBTU from 2011 to 2017 with 3 percent annual increase for the rest of the contract?s life. KSDE will also pay 30 percent premium of any price increase it will get from state electricity firm PLN.
KSDE will team up with a local company called PT Toba Sejahtera to build the power plant, the report said.
Total is the operator of Mahakam Block, Indonesia?s largest gas producing block with 50 percent interest. Inpex has the remaining balance. (*)