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