US$895.26 million gas sales contracts signed

Alfian , The Jakarta Post , Jakarta | Fri, 08/28/2009 10:08 PM

Three gas sales contracts worth a total of US$895.26 million were signed Friday in Jakarta.

“Two of the contracts are amendments to existing gas sales contracts, while [the third] contract is a new gas sales contract,” upstream oil and gas regulator BPMigas’s deputy for operations, Budi Indianto, said in a contract signing ceremony.

The first contract is the 12 years-gas sales contract from producer Kalila (Bentu) Ltd to state-owned power utility PT Perusahaan Listrik Negara (PLN).

Under the contract, Kalila will supply between 15 billion British thermal unit per day (BBTUD) and 30 BBTUD of gas to a PLN’s power plant in Pekanbaru, Riau Province. The contract value is $678 million.

The second contract covers a sale from PT Pertamina EP, a subsidiary of state oil and gas company PT Pertamina, to oil and gas company VICO. Under the contract, Pertamina EP will supply 1 BBTUD of gas to VICO within six months.

“The gas will be used to increase efficiency of fuel usage at VICO’s oil and gas fields,” BPMigas’s chairman R. Priyono said. The contract is valued at $0.69 million.

The Friday contract signing also included a gas sales agreement from a joint operating body (JOB) Pertamina and Medco E&P Simenggaris (JOB PMEP Simenggaris) to a buyer consortium of PT Pertamina Gas and PT Medco Gas Indonesia.

The 11 year contract is valued at $216.57 million, with JOB PMEP Simenggaris supplying 20 BBTUD of gas to the same consortium to fuel their methanol plant in Bunyu Island, East Kalimantan.