Transasia closes Transgasindo stake transaction

US oil and gas firm ConocoPhillips announced on Tuesday financial close of the purchase by Transasia Pipeline Company Pvt. Ltd. of a 40 percent stake in PT Transportasi Gas Indonesia (?Transgasindo?), a subsidiary of PT. Perusahaan Gas Negara (Persero) (?PGN?) Indonesia?s state-owned gas transmission company.

On September 12, 2002, Transasia entered into a Share Sale and Purchase Agreement with PGN under which, subject to certain conditions that have now been satisfied, Transasia agreed to purchase 40 percent of the shares of Transgasindo. The total consideration for the stake is US$ 187.6 million, which includes a commitment to contribute US$ 57.6 million of new equity to assist in the financing of the Grissik-Batam-Singapore pipeline.

Transasia is an incorporated joint venture company owned by ConocoPhillips, PETRONAS, Singapore Petroleum Company Limited (SPC) and Talisman Energy Inc. ConocoPhillips and PETRONAS has 35 percent stake each in Transasia while SPC and Talisman has 15 percent each.

Transgasindo?s principal assets are the existing Grissik-Duri pipeline and the Grissik-Batam-Singapore pipeline that is currently under construction by PGN and will be transferred to Transgasindo at a fixed price on completion in late 2003.

The 536 km Grissik-Duri Pipeline runs from the Corridor Block gas plant operated by a subsidiary of ConocoPhillips to the Duri oil field, where Caltex operates facilities to take delivery of the gas. The Grissik-Duri Pipeline has a current maximum throughput capacity of 320 MMSCFD.

Compression facilities are currently being installed along the Grissik-Duri pipeline to meet the additional gas requirements at Duri. The throughput capacity is scheduled to increase to 430 MMSCFD with the installation of these new compression facilities.

The 468 km onshore and offshore Singapore Pipeline will, when completed, transport gas from Sumatra to Singapore, where Gas Supply Pte. Ltd., a Singapore Government-owned company, will take delivery of the gas for sale to residential and industrial customers. The Singapore Pipeline has a maximum initial throughput capacity of 350 MMSCFD.

The new Board of Commissioners and Board of Directors of Transgasindo each include two representatives from Transasia, one each to be nominated by ConocoPhillips and PETRONAS. After an initial period of 4 years, the Board of Commissioner positions will rotate among the Transasia partners. (robert)