Gulf Indonesia Resources Ltd., Talisman (Corridor) Ltd., and Perusahaan Pertambangan Minyak Dan Gas Bumi Negara (Pertamina), the state oil and gas company of Indonesia, announced the signing of agreements for additional gas deliveries from the Corridor Block production sharing contract (PSC) area to the Duri Steamflood in central Sumatra operated by PT Caltex Pacific Indonesia (Caltex).
The terms of these agreements include a contract quantity of 1.1 trillion cubic feet (tcf) of sales gas to be delivered over a term of 19 years and exchanged for Duri crude oil at an approximate ratio of eight thousand cubic feet per barrel, resulting in approximately 140 million barrels of oil for export on behalf of the Corridor Block PSC partners.
Startup of gas deliveries is expected to occur in late 2002. By the start of 2003, contract quantities of 120 million cubic feet per day (mmcf/d) will supplement the 305 mmcf/d of gas that is contracted under the original agreement with Caltex for a total combined quantity of 425 mmcf/d.
By mid- 2003, the contract quantities in the new agreement will increase to 180 mmcf/d to offset the contracted decline to 245 mmcf/d in the original agreement with Caltex, thereby maintaining the total combined quantity.
Natural gas for the new contract will be supplied from the Suban field in the Corridor Block production sharing contract (PSC) area in south Sumatra, Indonesia after the construction of field facilities and a trunkline from the field to the Grissik gas plant.
The natural gas will be delivered through the existing 544-kilometre Grissik to Duri pipeline owned and operated by PT Perusahaan Gas Negara (PGN), the Indonesian state gas distribution/transmission company.
PGN will install compression facilities to expand the capacity of the pipeline to meet the increased demand from Caltex under this new contract.
