PLN, PKT sign gas purchase contracts

PLN, PKT sign gas purchase contracts

State power firm PT PLN and fertilizer company PT Pupuk Kaltim
signed on Tuesday a gas purchase agreement with a number of oil
and gas producers in a bid to secure a gas supply for the
respective companies.

On the same day, the government also signed new oil and gas
contracts with a number of production sharing contractors who won
new oil and gas acreages in a recent direct offering.

The gas purchase agreement that totaled 11.9 trillion cubic
feet (TCF) and was worth US$29 billion was signed by PT PLN and
PT Pupuk Kaltim with oil and gas producers namely Total, Unocal,
Vico, PT Exspan Nusantara and BP West Java Ltd.

PLN will use the natural gas from PT Exspan Nusantara and BP
West Java Ltd amounting to 13 million cubic feet per day (MMSCFD)
and 265 MMSCFD respectively to fire Muara Karang and Tanjung
Priok power plants in Jakarta.

Muara Karang and Tanjung Priok need a total of 230 MMSCFD of
gas.

Meanwhile, PT Pupuk Kaltim will use the natural gas for its
three fertilizer companies.

BP Migas representing the government also signed new oil and
gas contracts with six companies with a total investment
commitment during the exploration period of $66.6 million and a
bonus for the government of $65.5 million.

The six companies are Halmahera Petroleum Ltd (offshore
Halmahera, Maluku), PT Mitra Energy Development Asia (offshore
Biliton, Java sea), PT Eksindo Petroleum Tabuhan (Bontang, East
Kalimantan), Tately NV (onshore Palmerah, South Sulawesi), Pearl
Oil Salawati Ltd (West Salawati, West Papua), and PT Elnusa
Bangkanai (Bangkanai). -- JP