PGN, Santos to sign sales deal

PGN, Santos to sign sales deal

JAKARTA: PT Perusahaan Gas Negara, Indonesia's state-controlled
gas distributor, said it will sign an agreement next month to buy
as much as 100 million cubic feet a day of the fuel from Santos
Ltd., Australia's biggest natural gas producer.

The signing, originally scheduled for June 25, has been
delayed at least twice because paperwork was incomplete and
because of changes to former President Megawati Soekarnoputri's
schedule, Djoko Harsono, head of the marketing division of
Indonesia's state oil and gas regulator BPMigas said in July.

"The two companies have agreed on all crucial things and are
only waiting for legal paperwork," W.M.P. Simandjuntak,
Perusahaan Gas's president director, said in Jakarta. "We're
planning the signing in mid-December."

Santos in January signed an initial agreement to sell as much
as 100 million cubic feet a day of gas from the A$150 million
(US$103 million) Maleo project to Perusahaan Gas, which will
resell the gas to state utility PT Perusahaan Listrik Negara.

Perusahaan Gas will buy the gas from Maleo at $2.24 per
million British thermal units, he said. -- Bloomberg