Gulf Canada wins deal in RI

Gulf Canada wins deal in RI

CALGARY, Canada (Reuter): Gulf Canada Resources Ltd and Talisman Energy Inc said on Monday they signed an underwriting agreement with lenders worth US$450 million to provide natural gas to Indonesia.

The Calgary-based firms want to bring the Corridor Block Gas Project to market in central Sumatra, which is designed to ship about 300 million cubic feet per day of natural gas.

The underwriters are Itochu Corp, Sumitomo Bank Ltd, Chemical Banking Corp and DKB Merchant Bank (Singapore) Ltd.

The project is expected to cost US$600 million for total upstream project costs before gas production, and construction is slated to start during the first half of this year, with gas starting to flow by late 1997.

Gulf holds a 54 percent stake, Talisman 36 percent and the Indonesian state-owned firm Pertamina 10 percent.