Jakarta (Platts)--5Dec2012/507 am EST/1007 GMT
Indonesia's publicly traded oil and gas company Medco Energi Internasional has amended its supply contract with local gas distributor Mitra Energi Buana increasing delivery volumes from its South & Central Sumatera block to 3.7 billion Btu/day (around 3,578 Mcf/day) from 2.5 billion Btu/d, an official said Wednesday. The amended supply contract is for a five-year period beginning December 31, 2013. Medco, through its subsidiary Medco E&P Indonesia, will supply a total 12.6 trillion Btu (around 126 Bcf) over the five-year period now, senior manager relations division of Medco E&P Indonesia Joang Laksanto said. As part of the amendment, Mitra Energi Buana will buy the gas from Medco at a higher price of $6.04/MMBtu up from $3.41/MMBtu previously, according to Laksanto. This price will be increased by 3% every year over the five-year contract period, he added. "The gas price and volume amendment will increase Medco's revenue by $40 million, from $18 million earlier to $58 million," Laksanto said.Article continues below...Request a free trial of: Oilgram NewsOilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
Indonesia's publicly traded oil and gas company Medco Energi Internasional has amended its supply contract with local gas distributor Mitra Energi Buana increasing delivery volumes from its South & Central Sumatera block to 3.7 billion Btu/day (around 3,578 Mcf/day) from 2.5 billion Btu/d, an official said Wednesday. The amended supply contract is for a five-year period beginning December 31, 2013. Medco, through its subsidiary Medco E&P Indonesia, will supply a total 12.6 trillion Btu (around 126 Bcf) over the five-year period now, senior manager relations division of Medco E&P Indonesia Joang Laksanto said. As part of the amendment, Mitra Energi Buana will buy the gas from Medco at a higher price of $6.04/MMBtu up from $3.41/MMBtu previously, according to Laksanto. This price will be increased by 3% every year over the five-year contract period, he added. "The gas price and volume amendment will increase Medco's revenue by $40 million, from $18 million earlier to $58 million," Laksanto said.
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Medco is amending gas supply contracts which have prices set below $6/MMBtu. "Generally, [most of the amended contract prices are] are above $6/MMBtu," he said.--Anita Nugraha, newsdesk@platts.com --Edited by Haripriya Banerjee, haripriya_banerjee@platts.com
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