PETRONAS, Malaysia’s national oil company, today signed a Gas Sales Agreement (GSA) with PERTAMINA, the Indonesian state-owned oil and gas enterprise, for the purchase of natural gas from Indonesia’s West Natuna Sea area.
Under the GSA, PETRONAS will purchase up to 250 million standard cubic feet (scf) of natural gas per day, with a total volume of 1.5 trillion scf over a 20-year period. Initial gas delivery is planned to commence by mid-2002. The gas will be supplied via a pipeline to PETRONAS’ Duyong Gas Field facilities located in Malaysia.
The signing of the GSA marks a key milestone for both PETRONAS and PERTAMINA as it will provide a linkage between gas-prolific areas of Malaysia and Indonesia. This will not only enhance the relationship between PETRONAS and PERTAMINA but will also open up more avenues and opportunities for further cooperation between Malaysia and Indonesia in the petroleum sector. The interconnection to the gas-prolific areas of Indonesia will also provide additional security of supply for Malaysia’s future energy requirements.
The pipeline linkage between the two countries will also be another important step towards the realisation of the Trans-ASEAN Gas Pipeline network to link and expand ASEAN’s existing and future gas infrastructures to meet the region’s increasing energy requirements. PETRONAS has also been active in securing upstream and downstream opportunities in Indonesia. PETRONAS is currently involved in two exploration blocks in the Pasemah area, Sumatra (50 percent interest) and the Ketapang Block offshore Java (50 percent interest) through its subsidiaries PETRONAS Carigali (Pasemah) Ltd and PETRONAS Carigali (Ketapang) Ltd respectively. PETRONAS also has a 25 percent equity in Premier Oil Ltd which has exploration and production interests in Indonesia and is actively involved in the supply of gas from the West Natuna Area to Singapore, delivery of which commenced early this year.
At the GSA signing ceremony held in Jakarta, PETRONAS was represented by its President and Chief Executive Tan Sri Dato’ Mohd Hassan Marican while PERTAMINA by its President Director and Chief Executive Officer Mr. Baihaki Hakim.
Legal and Corporate Affairs Division
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