Singapore, Indonesia okay 20-year gas deal
Indonesia’s state-owned oil and gas company Pertamina has agreed with Singapore-based Gas Supply Pte Ltd, on the details of a seven-billion-dollar gas supply contract from Sumatra island to Singapore, a report said yesterday.
The 20-year contract, containing the particulars and the full deal, the outlines of which were agreed on last August 29, will be signed by both companies next month, Pertamina exploration and production director Gatot Wiroyudo was quoted by the Jakarta Post as saying.
“It is expected that this agreement, together with its supporting agreements, including gas supply and transportation, will be executed on or before November 15,” Wiroyudo said.
Under the agreement, Pertamina would supply between 150 and 350 million cubic feet of gas per day to the Singaporean firm, a wholly-owned subsidiary of Power Gas Ltd, for 20 years starting in 2003, the official said.
“The total contract quantity will generate an income in excess of seven billion dollars,” he said.
The gas would come from fields in Central and South Sumatra operated by Gulf Indonesia Resources Grissik, Santa Fe Energy Resources Jabung and Gulf Indonesia Resources South Jambi.
Wiroyudo said that the development of the gas fields and plants would cost about $700 million while another $300 million would be needed to construct a submarine pipeline linking Sumatra and Singapore.
Pertamina is already scheduled to begin delivering gas from Natuna in the South China sea, to the Singaporean firm Sembawang Gas in January under a 22-year contract signed in 1999. – AFP
©--Agence France Press.