Mobil awards gas deal

Mobil awards gas deal

FAIRFAX (Reuter): Mobil Corp said P.T. Tripatra Engineers and
Constructors has been awarded a lump sum turnkey contract for a
pipeline to develop the North Sumatra Offshore "A" natural gas
field.

Under the terms of the proposed contract for over US$300
million, Tripatra will be the lead contractor for a consortium
that includes Toyo Engineering Corp and McDermott International
Inc, Mobil said. It said the overall project cost will exceed
$500 million.

The letter of intent authorizes Tripatra to commence work
immediately in accordance with terms of the proposed contract.
The award of this contract was approved by Indonesian authorities
on Feb. 26, Mobil said.

Mobil operates the North Sumatra Offshore block, located in
the Malacca Strait off the northeast coast of Sumatra, and holds
a 100-percent working interest in the production sharing contract
with Pertamina, Indonesia's state oil and gas company.

The field, located in 354 feet of water and located about 60
miles from the P.T. Arun LNG plant, will produce 450 million
standard cubic feet per day of natural gas LNG plant feed
beginning in July 1999.