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 it.
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, Prasetyo said.
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.
