PowerGas, Pertamina deal

PowerGas, Pertamina deal

JAKARTA (JP): State oil and gas company Pertamina signed on
Tuesday in Singapore a memorandum of understanding (MOU) with
Singapore's PowerGas, a subsidiary of Singapore Power, which will
allow the latter to buy natural gas from the former's
contractors.

Pertamina spokesman Ramli Djaafar said in a statement that the
natural gas would be supplied by Gulf Indonesia Resources Ltd, a
subsidiary of Gulf Canada Resources Ltd and Santa Fe Energy
Resources (Jabung), a subsidiary of America's Santa Fe Energy
Resources Ltd, from their gas fields in South Sumatra.

Djaafar said the gas would be channeled through 420 kilometers
of pipelines to a location near Batam and 35 kms away from
Singapore. The pipelines would be built by state gas distributor
PT Perusahaan Gas Negara (PGN) and PowerGas.

All related parties are to finalize the commercial aspects of
the agreement by October and the signing of the contract is
slated for March 31, 1999.

The supply of gas to PowerGas is expected to begin in 2001
with a volume of 300 million cubic feet per day. (jsk)