RI to export gas to S'pore

RI to export gas to S'pore

SINGAPORE (Dow Jones): Indonesia's state oil and gas company Pertamina will sign a memorandum of understanding with Singapore Power Ltd for export sales of natural gas from southern Sumatra by the end of August, a senior official with Gulf Indonesia Resources Ltd told Dow Jones Newswires yesterday.

"We'll certainly have (an MOU) before the end of August," said Bill Fanagan, Jakarta-based president and chief executive of Gulf Indonesia.

Gulf Indonesia, a New York-listed affiliate of Gulf Canada Resources Ltd, is operator for and holds a 54% working interest in the Corridor Block production-sharing contract, which would supply gas to Singapore via pipeline under the proposed sales arrangement.

Following the MOU, the parties involved would next reach a gas sales agreement and finally sign a definitive contract, Fanagan said.

"It will probably take us until March to get all this done," he said.