April 22, 2012

Petronas sign gas supply deals with Keppel Energy and PT Jatim Utama.



Petroliam Nasional Bhd (Petronas) made a major coup in the past two weeks, securing two gas supply deals in Singapore and Indonesia.

In the latest deal, Petronas signed a gas sales agreement (GSA) with Keppel Energy Pte Ltd, a subsidiary of Singapore-listed Keppel Corp Ltd to supply 43 million standard cubic feet per day (mmscfd) of natural gas to the latter, a deal which is believed to be worth US$2.2 billion (RM6.74 billion).

“Based on historical oil prices, the contract value is estimated to be about US$2.2 billion.

The gas will be used to support the energy needs of Keppel Energy investments,” Keppel Corp said in a statement issued last Friday.

According to the statement, Petronas will source the natural gas from its various supply networks.

“The agreement is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year,” the statement said.

From its humble beginnings as a local shiprepair yard, the Keppel group has become one of the largest conglomerates in Singapore.

Meanwhile, Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, has signed a GSA to supply some 50 mmscfd of natural gas to PT Jatim Utama (PJU) in Indonesia. The company, through its subsidiary Kontraktor Kontrak Kerjasama PC Ketapang II Ltd (KKS Contractor) and PJU signed the agreement
on April 13.

In a statement, BP Migas, the upstream oil and gas executive agency in Indonesia, said under the agreement KKS Contractor will supply gas to PJU from Bukit Tua field of Block Ketapang in East Jawa.

“PJU will then distribute the gas to PT Pembangkitan Jawa Bali in Gresik,” BP Migas said.

However, the value of the contract was not disclosed.

“This approval marks Petronas’ contribution to the development of oil and gas as well as the power sector to generate electricity in a costeffective utilisation of gas from Bukit Tua field.

“Petronas hopes this will strengthen cooperation with the government of East Timur,” BP Migas said, quoting a statement from Petronas.

At oil production peak, the Bukit Tua field is expected to reach 20,000 barrels per day, with follow-up gas at 50 mmscfd.

“This field is expected to start production in mid-2014,” BP Migas said, adding that Petronas Carigali operates in over 20 countries, including Indonesia. Currently, the national oil company is participating in 10 cooperation contracts in Indonesia.

Source: Business Times (23/04/12)




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