US$5.5b gas deals to be signed end of this month: BP Migas

Several gas producers and buyers are scheduled to sign deals worth a total of US$5.5 billion on October 30 this year, according to oil and gas upstream authority BP MIGAS’ chairman Kardaya Warnika.

 

“President Susilo Bambang Yudhoyono is scheduled to witness the signing of the deals,” Kardaya said on Wednesday.

 

The gas producers include PT Energi Mega Persada, state owned oil and gas company PT Pertamina, Canadian firm Husky Energy and Chinese firm PetroChina. The buyers include state owned electricity firm PT Perusahaan Listrik Negara (PLN), state owned petrochemical firm PT Petrokimia Gresik.

 

Energi Mega Persada will supply gas from its Kangean block, Husky from Madura Strait block, Pertamina from Gebang block and PetroChina from Jabung block.

 

During the ceremony, the President will also inaugurate the operation of new oil and gas wells in Oyong field controlled by Australian firm Santos Limited and in Ujung Pangkah field controlled by American firm Hess Corporation.

 

According to Kardaya, Oyong now produces 12,000 barrels of oil per day, while Ujung Pangkah produces 100 million cubic feet  per day (MMCFD) of gas.

 

Also during the ceremony, BP MIGAS will announce the new oil and gas blocks that will be put in auction.

 

A refinancing agreement worth US$842 million for the Tangguh LNG project will also be signed during the ceremony, Kardaya said. (Godang)