Shell eyes new Indonesian deal

Shell eyes new Indonesian deal

AMSTERDAM (Dow Jones): Royal Dutch/Shell Group of Companies (RD) said Friday that its Shell International Gas Ltd. division has started talks with the Indonesian Ministry of Mining and Energy and with Pertamina on the possibility of using Shell's technology to develop the nation's uncommitted gas resources.

Shell said it will conduct a study with a view to recommending to the Indonesian government that the Shell middle distillate synthesis (SMDS) technology be accepted for the development of gas resources in addition to the liquefied natural gas technology.

Pertamina and Shell will investigate prospects for a new 70,000-barrel-a-day gas to liquids conversion plant.

"Shell is actively seeking investment opportunities around the world for second generation SMDS facilities, and Indonesia offers substantial potential for the concept," said Jack Jacometti, Shell vice president SMDS.

SMDS technology converts gas into ultra clean liquid products.