China, Indonesia sign energy cooperation agreements

Indonesia and China have signed eight energy-related agreements, valued at $3.13 billion, during the third Indonesia-China Energy Forum (ICEF) in Jakarta.

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Dec. 30 -- Indonesia and China have signed eight energy-related agreements, valued at $3.13 billion, during the third Indonesia-China Energy Forum (ICEF) in Jakarta.

The first agreement extended an oil and gas contract for a development in the Madura Strait, East Java, operated by China National Offshore Oil Corp. and Canada's Husky Energy Inc.

Indonesia's upstream oil and gas regulator BPMigas signed the 20-year extension of the two companies' contracts, which were due to expire in 2012.

ICEF also witnessed two agreements on coal mining, one on biodiesel plants, and four on electric power production projects.

The eight agreements, and amount of finance, include:

-- Oil and gas contract extension in Madura Strait (BP Migas, CNOOC, and Husky Madura Ltd.; $642 million).

-- Biodiesel development in Jambi and South Sumatra (PT Kurnia Selaras and China Development Bank; $255 million).

-- Coal mining joint venture in Muara Enim (Bukit Asam and Huadian Corp.; $14.40 million).

-- Coal mining cooperation in East Kalimantan (PT Budi Dharma Kencana and Lark Guangdong Power Resources Inc.; $350 million).

-- Power plant financing in Pelabuhan Ratu (Exim Bank of China and PT PLN; $481.94 million).

-- Power plant financing in Pacitan (Exim Bank of China and PT PLN; $293.23 million).

-- Power plant construction in Cilacap (PLN, CNTIE, and Shanghai Electric; $605.29 million).

-- Power purchase agreement for Muara Enim (PT PLN and PT GH EMM Indonesia; $330 million).

Contact Eric Watkins at hippalus@yahoo.com.

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