Govt Signs Seven Gas Sale Contracts
Upstream oil and gas regulator SKKMigas on Tuesday signed seven gas purchase contracts worth a total of $571 million.
The deals, covering a total volume of 561 trillion British thermal units (TBTU), were made for domestic consumption, SKKMigas chief Rudi Rubiandini said.
"The signing of these gas sale contracts and modified gas sale contracts represent SSKMigas's commitment … to filling domestic gas needs while simultaneously supporting the needs of oil refineries, industries and power generators. [This will] strengthen national energy resilience," Rudi said.
The signings, which took place on the margin of the ongoing 37th Indonesian Petroleum Association (IPA) Exhibition, were witnessed by President Susilo Bambang Yudhoyono, Energy and Mineral Resources Minister Jero Wacik and Rudi.
Santos Madura Offshore and state utility company PLN (Persero) inked a deal covering 25 billion British thermal units (BBTUD) over a period of four years. The first supply will be shipped 24 months after the contract's signing.
A second contract was signed between state-owned oil and gas firm Pertamina and Serumpun Pseko. The deal provides for the shipment of one million standard cubic feet per day (mmscfd) of natural gas to Sarolangun district in Jambi, Central Sumatra, starting in January 2014.
The five other agreements were revisions of previously signed contracts.
Rudi hoped that the additional gas supply would allow Indonesia's industrial and energy sectors to continue their growth.
"The price adjustments in the contract revisions are hoped to increase government revenues," he added.
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