Update-PGN seeks gas supply contract extension from ONWJ

(Add: Fifth paragraph:ONWJ reserves only adequate for 2 months supply)

IDX-listed state gas distribution firm PGN said it was negotiating gas supply extension from Offshore North West Java (ONWJ) PSC offshore West Java, which is operated by Pertamina Hulu Energi (PHE).

CEO Hendi Prio Santoso told reporters on Tuesday that the current 65MMCFD supply contract will expire this year.

Hendi said PGN wanted to extend the supply contract as long as possible. ?We?re still in talks about the volume, length of contract and price,? he said.

PHE, however, signaled that it would not be able to immediately extend gas supply contract with PGN. ?Thus far we can not confirm if ONWJ has adequate uncontracted reserves to extend the contract,? PHE Spokesperson Ali Mundakir said. ?PHE, however, is hopeful that exploration works in ONWJ in 2011 could discover gas that could be used to fully extend the contract,? he said.

He added that under the existing reserves ONWJ could only supply 65 MMCFD for 2 months in January and February 2010.

PHE is an upstream subsidiary of state oil, gas company PT Pertamina (Persero). (godang/bernard)