Premier Oil signs gas deal with Indonesia's PLN

December 11, 2007 - 0:0

JAKARTA (Reuters) -- UK oil explorer Premier Oil Plc. has signed a deal to supply gas to Indonesia's state electricity firm company, PT Perusahaan Listrik Negara (PLN), an executive said on Monday.

Under the head of agreement, Premier would supply 149 trillion British thermal units (BTU) of gas to PLN over a 15-year period, starting 2010, Peter Mills, president director of Premier Oil Indonesia told reporters.
The British firm is the operator of Block A in the Natuna island area of the South China Sea.
Indonesia's oil and gas watchdog, BPMigas, also said that another group of foreign firms, including Total SA, Vico Indonesia, Chevron Corp., and Italy's Eni, had signed a joint deal to supply 726 trillion BTU of gas to an Indonesian fertilizer firm, PT Pupuk Katim.
Under the agreement, the group will supply the gas over a 10-year period from 2008.
In addition, Indonesia's largest listed energy company, PT Medco Energi Internasional Tbk MEDC.JK, also signed a supply agreement with another fertilizer firm, PT Pupuk Iskandar Muda, the watchdog said.
Under the deal, Medco would supply 223 trillion BTU of gas to the fertilizer firm over the 6-7 year term of the contract starting from 2010.
No financial details were released.
Indonesia, Asia-Pacific's only OPEC member, is increasing its use of alternative energy sources such as natural gas in a bid to reduce oil use amid high prices and dwindling domestic supply.
The Southeast Asian nation, which has far more gas than oil, has pushed companies to move faster in developing production as the country badly needs the gas for domestic industries and exports.
Indonesia is the world's second-largest producer of liquefied natural gas after Qatar but production is expected to fall by 4 percent next year, while exports may fall even further as it seeks to divert more gas to the domestic market.
The country is estimated to have gas reserves of around 182 trillion cubic feet.