By the OGJ Online Staff
HOUSTON, Mar. 29�Malaysian state oil company Petronas has signed a 20-year agreement to buy gas from Indonesian state oil and gas enterprise Pertamina.
Petronas will buy up to 250 MMscfd of gas, or a total of 1.5 tcf over the contract period. Delivery of the gas from Conoco Inc.-operated Block B in the West Natuna Sea will begin by mid-2002.
The gas, worth $4 billion, will be transported via pipeline to Petronas' Duyong field facilities in Malaysia.
A Petronas statement said the interconnection with 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 realization 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," said the statement.
A preliminary heads-of agreement was signed last year. Conoco owns 40% of Block B. Inpex Masela Ltd. owns 35%, and Texaco Inc. owns 25%.
The production unit for the block is en route from South Korea (OGJ Online, Mar. 27, 2001).