Gulf Indonesia Resources Ltd. signed agreements to supply natural gas from Sumatra to Singapore. The oil company signed a gas supply accord with Pertamina, Indonesia's state oil company.
Pertamina has concurrently signed a gas sales deal with a subsidiary of Singapore Power. Terms of these agreements include a contract quantity of 2.27 Tcf of sales gas to be delivered over a term of 20 years.
Gas deliveries are expected to commence in mid-2003, with contract quantities of 150 MMcf/d of gas stepping up annually to 350 MMcf/d of gas in 2009.
The gas will be supplied from the Corridor and South Jambi B production sharing contract areas, both operated by Gulf Indonesia, and from the Jabung production sharing contract area operated by a third party.
The gas will be delivered through approximately 310 miles of new pipeline facilities to be constructed from South Sumatra to the island of Batam and on to Singapore.
The agreement is the second significant gas sales deal that Gulf Indonesia has secured in the past two months and the fourth substantial long-term U.S. dollar-based gas contract for the company.
© 2001 Mena Report (www.menareport.com)
