Jakarta (ANTARA News) - U.K. oil explorer Premier Oil Plc will sign a deal to supply gas to Indonesia's state electricity firm company, PT Perusahaan Listrik Negara (PLN), the country's energy watchdog said on Monday.
Under the planned head of agreement, Premier would supply 149 trillion British thermal units (BTU) of gas to PLN over a 15-year period, the watchdog, BP Migas, was quoted by Reuters as saying in a statement.
The watchdog also said that another group of foreign firms, including Total SA, Vico Indonesia, Chevron Corp, and Italy's Eni, would sign a joint deal to supply 726 trillion BTU of gas to an Indonesian fertiliser firm, PT Pupuk Katim, over a 10-year period.
In addition, Indonesia's largest listed energy company, PT Medco Energi Internasional Tbk, is due to sign a supply agreement with another fertiliser firm, PT Pupuk Iskandar Muda.
Under the deal, Medco would supply 223 trillion BTU of gas to Iskandar Muda over the 6-7 year term of the contract.
Indonesia is the world's second-largest producer of liquefied natural gas but production is expected to fall by 4 percent next year, while exports may fall even further as its seeks to divert more gas to the domestic market.
The Southeast Asian nation has also been trying to increase gas production to substitute for flagging oil crude production.
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