PETRONAS and its Indonesian counterpart PERTAMINA today signed a Memorandum of Understanding (MoU) to facilitate the conclusion of a Gas Sales Agreement (GSA) from South Sumatra to Malaysia.
The MoU also involves PERTAMINA’s production sharing contractors which operate certain onshore gas fields in South Sumatra identified to supply the gas to Malaysia. These contractors are Gulf Resources, YPF and Santos. Under the MoU, PETRONAS will be accorded equity participation in the production sharing contracts for the identified fields.
The GSA expected to be concluded by the end of this year, will result in the supply of 300 million standard cubic feet of gas per day to Malaysia for 20 years. Delivery of the gas is scheduled to commence in early 2005.
The MoU was signed in Bali, Indonesia, in the presence of the Prime Minister of Malaysia Dato Seri Dr Mahathir Mohamad and the President of Indonesia Megawati Soekarnoputri. PETRONAS was represented by its President and Chief Executive Officer Tan Sri Dato’ Mohd Hassan Marican and PERTAMINA by its President Director Baihaki Hakim.
Earlier today, both heads of government witnessed the ceremony to inaugurate the delivery of gas from Indonesia’s West Natuna Sea to Malaysia, the first sale of pipeline gas from Indonesia to Malaysia.
Media Relations & Information Department