Indonesian companies ink crude, LNG, LPG agreements worth $6.12 billion
Jakarta (Platts)--26Dec2012/523 am EST/1023 GMT
BP signed a heads of agreement Wednesday with Indonesia's state-owned
power utility Perusahaan Listrik Negara to supply 23.96 million mt of LNG
over 20 years, starting 2013, Jero Wacik, the energy and mines minister who
is also the head of SK Migas, said.
The $5.8 billion deal was one of five agreements signed Wednesday by
various Indonesian companies on crude oil, LNG and LPG, he said. The deals
totaled $6.12 billion, he added.
BP will start with two cargoes of LNG in 2013, gradually increasing
supply after that, Hadi Prasetyo, spokesman for SK Migas said. BP will supply
the LNG from that diverted from its contract with Sempra as well as the
proposed 3.8 million mt/year Train 3 at Tangguh, he added. Train 3 is
expected to come on stream in 2018-2019.
BP and US' Sempra have reached a deal that allows Indonesia to divert 54
of the 60 cargoes originally committed to the US company. The deal is valid
for the rest of Sempra's contract, unless one of the parties needs to review
PetroChina signed two sales and purchase agreements with Pertamina Hulu
Energi, subsidiary of state-owned oil and gas company Pertamina, to supply
600,000 mt of LPG from Sumatra's Jabung and another 0.0035 million mt from
Papua's Sorong projects, SK Migas Vice Chairman Johanes Widjonarko said. The
one-year deal for 2013 is worth $150 million, he added.
Pertamina EP, another Petamina subsidiary, also signed addendum
contracts with PLN subsidiary Pembangkitan Jawa Bali for the supply of more
than 44,000 Mcf/d of natural gas from its fields at Pondok Tengah, West Java,
he said. The four-year contract is worth $30 million, he added.
Meanwhile, Pertamina also signed amendment agreements on crude sales
from Cepu to a consortium led by ExxonMobil, Widjonarko said. Pertamina will
buy 16.8 million barrels of crude oil, worth $140 million, under deals
spanning August 2009 to June 2015, he added.
Under the amendment deals, crude sales to Pertamina will be increased
from 10,000 b/d to 16,000 b/d and the period of the contract extended till
2015 when the processing facility at Cepu is expected to be completed,
Indonesia's giant Cepu block is expected to produce 165,000 b/d of crude
oil from 49 wells. The development is expected to include a central
processing facility and a 95 km pipeline to carry oil products to the 1.7
million barrel floating storage and offloading unit.
ExxonMobil and Pertamina each hold a 45% stake in the Cepu block, with
the remaining 10% held by the local government.
--Anita Nugraha, firstname.lastname@example.org
--Edited by E Shailaja Nair, email@example.com