S'pore buys Natuna gas

S'pore buys Natuna gas

LONDON (Reuter): U.K. oil and gas company Premier Oil Plc said yesterday it had signed a letter of agreement (LOA) with Sembawang Engineering and Construction Pt Ltd for the sale of 2.5 trillion cubic feet of West Natuna Sea natural gas.

Premier, which holds a 28 percent stake in the Indonesian natural gas project, said a gas sales agreement was scheduled to be signed later this year with first gas expected by mid-2000 at a rate of 325 million cubic feet a day for an initial 22 years.

Premier is a participant in the consortium which will supply gas to Singapore once contract negotiations, led by Indonesian state oil company Pertamina, are completed.

The company also said its Nelayan-1 exploration well in the Natuna Sea area "has encountered eight oil bearing sands and an estimated minimum net pay section of 70 metres".

The field is located in the Kakap block, in which Premier holds an 18.75 percent stake.