Medco Energi Internasional has agreed to sell gas from Aceh’s Block A in Indonesia to Pertamina.
The gas sales and purchase agreement (GSPA) for Block A will be used to supply gas demand in the provinces of Aceh and North Sumatera.
The final investment decision is expected by mid 2015 and the gas supply is due to start by 2017 for a 13-year contract period.
“As Senoro Gas and Block A Gas projects complete in 2015 and 2017 respectively, the ratio of the Company’s revenues from oil and gas sales will be around 50:50.”
It includes a total gas volume of 198 Trillion British Thermal Unit (TBTU) and a daily gas supply of 58 billion British thermal unit (BBTU) per day.
MedcoEnergi operates and holds a 41.67% stake in participating interest in this Block A PSC. KrisEnergy and Japex own 41.66% and 16.67% stakes respectively.
MedcoEnergi has also signed the GSPA amendment with Perusahaan Daerah Mura Energi to meet the gas needs for electricity in Musi Rawas Regency, South Sumatera.
Under the deal, Medco E&P will supply gas from South Sumatera Block with a total contract volume of 8,750 BBTU for 11 years with a daily gas supply of 2.5 BBTU per day.
MedcoEnergi president director & CEO Lukman Mahfoedz said: “With the above signed gas sales contract, MedcoEnergi’s revenues will be less dependent to the global oil price fluctuation since the gas price is not linked to oil price.
“As Senoro Gas and Block A Gas projects complete in 2015 and 2017 respectively, the ratio of the Company’s revenues from oil and gas sales will be around 50:50.”
The total gas volume is more than 200 TBTU, equal to the total gas sales value of over $2bn.