UPDATE: Pertamina, PNOC to discuss gas deal

State-owned oil and gas company Pertamina will meet next week with Philippine National Oil Co. (PNOC), to further discuss a plan to sell natural gas to the Philippines, Dow Jones Newswires quoted a Pertamina official as saying on Tuesday.

Iin Arifin Tahkyan, Pertamina's upstream director, said officials from the two companies will meet Feb. 25 in Jakarta.

PNOC is seeking to tap gas supply from Indonesia's East Natuna field through the potential deal with Pertamina. Details on how much gas would be involved and how long the deal would last are still under discussion.

PNOC is interested in importing LNG from Indonesia as part of its plan to expand the Philippine natural gas industry beyond use for power generation, according to a memorandum of understanding signed late last year.

Iin added that PNOC is also keen in joining Pertamina to operate some of its natural gas and geothermal fields.

"We may offer a working interest (to PNOC) in Donggi," he said.

Pertamina estimates natural gas reserves at its Donggi block in Sulawesi total around five trillion cubic feet.

He added that Pertamina may also offer PNOC operatorship of a geothermal project in Lampung, South Sumatra, as PNOC has proven experience in operating geothermal projects in the Philippines.

However, he didn't elaborate on the geothermal project. (*)