RI seeking for other gas deal with KL
RI seeking for other gas deal with KL
The Jakarta Post, Gianyar, Bali
After signing a US$6.2 billion gas delivery contract with
Malaysia on Thursday, Indonesia hopes to garner further such
contracts with them.
In the future, contracts for natural gas from South Sumatra
and from the Block A gas field in West Natuna, in the South China
Sea could be finalized with Malaysia, a top official of state
owned oil and gas company Pertamina said.
"Indonesia and Malaysia are still studying the possibility for
other gas delivery contracts," said Pertamina president Baihaki
Hakim.
He was speaking to reporters after witnessing a ceremony to
launch the first natural gas delivery from Indonesia to Malaysia.
The ceremony was held at the Tampaksiring Palace, in Gianyar,
Bali.
Indonesia will deliver natural gas from West Natuna's Block B
(Blanak Block) in South China Sea to Malaysia's Duyong field
under a 20-year contract.
The signing ceremony was executed directly by President
Megawati Soekarnoputri and Malaysia's Prime Minister Mahathir
Mohammad by pressing a ceremonial button in Bali.
Meanwhile, a statement from Malaysia's oil and gas firm
Petronas said that it had already signed an MoU with Pertamina
for other gas supply contracts.
Petronas said that an agreement was expected by the end of
2002.
"The delivery of the gas is scheduled to commence in early
2005," it said.
The new gas supply contracts will also involve Pertamina's
production sharing contractors which operate onshore gas fields
in South Sumatra, such as Gulf Resources, YPF S.A. (YPF) and
Santos Ltd.
Under the new MoU, Petronas would be accorded an equity stake
in the production sharing contracts in the South Sumatra fields.
According to Baihaki, it is expected that Indonesia could
deliver some 300 million cubic feet per day of natural gas from
South Sumatra for the next 20 years.
From the Block A field in West Natuna, Indonesia expects to be
able to supply some 100 million cubic feet per day of natural gas
for 10 years.
Thursday's contract is expected to provide the Indonesian
government with some $2.9 billion in revenue after several
partners and subcontractors are paid.