Pertamina signs gas deal with Petronas<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina signed on
\nThursday a \"heads of agreement\" with Malaysian state oil and gas
\ncompany Petronas for the supply of natural gas from the West
\nNatuna area in the South China Sea to Malaysia.<\/p>\n
Pertamina's spokesman Ramli Djaafar said the agreement was
\nsigned by Pertamina's president Baihaki Hakim and Petronas'
\npresident Tan Sri Dato' Hasan Marican at Pertamina's
\nheadquarters.<\/p>\n
He said under the 20-year contract, Pertamina would supply a
\ntotal of 1.5 trillion cubic feet of natural gas to Petronas
\nthroughout the contractual period.<\/p>\n
The gas will be extracted from the gas fields in the Block B
\ncontract area, owned by a consortium comprising of Conoco Inc. of
\nthe United States, which is the consortium's leader, Texaco, also
\nof the U.S., and Inpex of Japan.<\/p>\n
The gas will be piped to the Duyong platform owned by Petronas
\nwith the first gas expected to arrive in the platform in the
\nmiddle of 2002.<\/p>\n
He said the agreement was signed by Pertamina's president
\nBaihaki Hakim and Petronas' Tan Sri Dato' Mohammad Hasan Marican
\nin a ceremony closed to the press.<\/p>\n
He said both parties had yet to sign a number of supporting
\nagreements before they reach the final deal.<\/p>\n
He said all the parties involved in the project had to spend a
\ntotal investment of US$3.5 billion to build gas production
\nfacilities, and construct underwater pipelines between West
\nNatuna to connect with the Duyong platform.<\/p>\n
The gas supplies were expected to generate up to US$6.2
\nbillion in total revenue throughout the contractual period or
\n$310 million per year for the government.<\/p>\n
The Malaysian gas deal will be the second gas deal to be
\nsigned by Pertamina for the supply of gas from the West Natuna
\narea.<\/p>\n
The state company has also signed a gas sales contract with
\nSingapore's Sembawang Corp. for the supply of gas from the area
\nto Singapore.<\/p>\n
The gas to be sent to Malaysia will be extracted from the gas
\nfields owned by Conoco, British company Premier Oil and Canadian
\nfirm Gulf Indonesia Resources.<\/p>\n
The consortium of the three Pertamina contractors is building
\na 640-kilometer subsea pipeline stretching from West Natuna to
\nSingapore.<\/p>\n
Meanwhile, Petronas was quoted by Reuters as saying in a
\nstatement that it and Pertamina also signed a deal in the same
\nceremony allowing the former to refine the crude oil owned by
\nPertamina.<\/p>\n
Under the six-month deal which will begin on November 1, this
\nyear, Petronas will refine 20,000 barrels of crude oil per day
\nfor Pertamina. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-signs-gas-deal-with-petronas-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}