Devon Energy Corp. reported that a definitive agreement has been signed concerning the export and sale of Indonesian natural gas to Singapore. A 20-year Gas Sales Agreement was signed on February 12, 2001.
The agreement is between Pertamina, Indonesia's state owned oil and gas company, and Gas Supply Private Limited, a wholly-owned subsidiary of PowerGas Ltd. of Singapore.
Through a related agreement with Pertamina, Devon will supply natural gas pursuant to the Gas Sales Agreement.
Under terms of the Gas Sales Agreement, sales of 150 million cubic feet (mmcf) of gas per day will begin in 2003.
Deliveries will increase to a peak rate of 350 mmcf per day by 2009. Devon's net share of this projected supply would range from approximately 26 mmcf per day initially to 48 mmcf per day at peak production.
Devon has interests in two of three blocks on the Island of Sumatra subject to the Gas Sales Agreement, Jabung and South Jambi B. Devon operates the Jabung block with a 30 percent working interest.
Other partners include Amerada Hess (Indonesia-Jabung) Ltd. (30 percent), Kerr-McGee Sumatra Ltd. (30 percent) and Pertamina EP (10 percent).
Devon has a 30 percent working interest in the South Jambi B Block. Devon's partners in South Jambi B are Gulf Indonesia Resources Limited, the operator, (45 percent) and Pertamina EP (25 percent).
© 2001 Mena Report (www.menareport.com )