Singapore Power says deal with Pertamina continues

Singapore Power says deal with Pertamina continues

SINGAPORE (Dow Jones): Singapore Power Ltd. Chairman Ho Kwon
Ping Wednesday said the Indonesian presidential elections
wouldn't have an impact on Singapore Power's Sumatra natural gas
deal with Indonesia state-owned gas and oil company Pertamina.

"We have been dealing (with Pertamina) totally above board,"
Ho said. "The gas deal can withstand any scrutiny. Any government
will support the deal."

Ho was speaking on the sidelines of the World Economic Forum's
East Asia Economic Summit in Singapore.

He said the US$7 billion gas deal was a "totally win-win"
situation for both Singapore and Indonesia, so a change in
Indonesian leadership won't have an impact on the agreement.

But Ho said the Sumatra gas deal will stand up regardless of
who becomes president.

Abdurrahman Wahid, a moderate Muslim intellectual, on
Wednesday beat popular opposition leader Megawati Soekarnoputri
in a thrilling election to become Indonesia's fourth president.

"There is no controversy in the deal," Ho said. "And we went
into this fully aware that there might be a change in government
(in Indonesia)."

Singapore Power signed a letter of agreement with Pertamina
Sept. 22 to buy $7 billion worth of natural gas from the Asamera
fields in southern Sumatra from Pertamina for 20 years beginning
in 2002.

The Asamera fields are operated by Gulf Indonesia Resources
Ltd.

Ho said there "is transparency in our deal," in part because
the Asian Development Bank is providing a $300 million loan to go
toward the construction of the 135-kilometer pipeline that will
link the Sumatra gas fields to Singapore.

The imported natural gas will be used to fuel Singapore
Power's electricity generation plants and for its petrochemical
and refining industries.

"One has to assume that business in Indonesia with the rest of
the world has to go on" after the presidential election, despite
the election's controversial nature, Ho added.