Gas suppliers sign $2.3b deal

The Jakarta Post ,  Jakarta   |  Tue, 04/15/2008 11:37 AM  |  Business

The upstream oil and gas regulator BP Migas announced Monday the signing of nine natural gas sales purchase agreements worth US$2.3 billion aimed to secure supplies for domestic demand.

"The signing of the agreements was an effort to meet the supply of gas for domestic demand and the government's kerosene-to-gas conversion program," BP Migas said in a statement sent to The Jakarta Post.

Five of the nine agreements are aimed to secure supplies of natural gas for fueling electricity generators in Batam, Bintan, East Kalimantan, South Sumatra and East Naggroe Aceh Darussalam.

The rest of the agreements include securing supplies for state-owned fertilizer company PT Petrokimia Gresik, state-owned gas company PT PGN, state-owned oil company PT Pertamina and liquefied-petroleum gas retailer PT Indogas Kriya Dwiguna. Supplies for the last two firms will support the kerosene-to-gas conversion program.

Of all gas suppliers, the country's largest publicly-traded oil company by sales, PT Medco Energi Internasional, signed through its subsidiaries three contracts worth $917.17 million.

"The signing of the contracts shows our commitment to supporting the country's energy supply policy and to continue support for local industries," said Lukman Mahfoedz, president director of PT Medco E&P Indonesia, in a statement sent to the Post.

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