ConocoPhillips Indonesia sales agreement underpins Suban gas field, processing expansions, new pipelines

ConocoPhillips (Grissik) Ltd., operator of Suban gas field on the Corridor Block PSC in South Sumatra, recently concluded a gas sales agreement with Indonesia's state gas transportation company PT Perusahaan Gas Negara (Persero) Tbk (PGN) that will lead to Phase II expansion of the field's production and processing facilities and new delivery pipelines. Suban Phase II will be connected to the Corridor PSC's existing gas processing facilities at Grissik in South Sumatra.

Aug. 11, 2004

2 min read

By OGJ editors

HOUSTON, Aug. 11 -- ConocoPhillips (Grissik) Ltd., operator of Suban gas field on the Corridor Block production-sharing contract (PSC) in South Sumatra, recently concluded a gas sales agreement with Indonesia's state-owned gas transportation company PT Perusahaan Gas Negara (Persero) Tbk (PGN) that will lead to Phase II expansion of the field's production and processing facilities and new delivery pipelines. Suban Phase II will be connected to the Corridor PSC's existing gas processing facilities at Grissik in South Sumatra.

ConocoPhillips will supply 2.3 tcf of gas over 17 years to PGN for industrial markets in West Java and Jakarta. The gas will be delivered through a new pipeline PGN will construct from Grissik through South Sumatra to Cilegon in West Java and a 606 km pipeline connecting Grissik to Muara Tawar east of Jakarta.

The Grissik-to-Muara Tawar pipeline construction is scheduled to take 30 months. The establishment of a dual pipeline system to customers in Jakarta and West Java will promote the expanding domestic gas market in Java.

Gas deliveries will commence in first quarter 2007 at a rate of 170 MMcfd and will plateau at 400 MMcfd in 2012 until contract termination in 2023.

BPMIGAS, the regulatory organization representing Indonesia's oil and gas interests, has approved the sale and designated ConocoPhillips to sell Indonesia's portion of gas.

ConocoPhillips holds a 54% interest in the block. Partners are Talisman Energy Inc. subsidiary Talisman (Corridor) Ltd. 36% and Indonesia's national oil company Pertamina 10%.