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Amerada Hess today welcomed the signing of a series of agreements that will enable
the sale of gas from its Jabung Block in South Sumatra into Singapore.
The agreements provide for the sale of gas from the Jabung PSC, in which Amerada
Hess holds a 30% interest, to Pertamina, Indonesia's State oil and gas company.
In parallel Pertamina and Gas Supply Private Limited, a wholly owned subsidiary
of Power Gas Limited, have signed a Gas Sales Agreement for the sale of gas, including
that from Jabung, to Singapore. A third agreement provides for the construction
of a pipeline and other facilities to transport the gas sold under the GSA. As
a result gas will be supplied from the Jabung PSC, and two other PSCs, starting
in 2003 at 150 million cubic feet per day (mmcfd) rising to 350 mmcfd in 2009.
The Jabung Block will supply some 40% of this production amounting to some 900,000
mmcf over the 20-year period.
In addition to the substantial gas reserves, the Jabung Block also contains significant
liquids reserves that will be produced as part of this project. Initial production
of 15,000 barrels per day (bpd) of LPG and 11,000 bpd of condensate are anticipated
in addition to the block's current oil production of 21,000 bpd.
The completion of these agreements follows a successful 2000 drilling campaign
in Indonesia for Amerada Hess, with exploration and appraisal activity yielding
three new discoveries and adding significant reserves to the Corporation's portfolio.
Commenting on these developments, Howard Paver, Managing Director for the International
Business Unit, said,
"This is an exciting development in the expanding pipeline network serving
the growing gas markets of South East Asia. We are obviously delighted that the
main Gas Sales Agreement and the related agreements have been successfully concluded.
It paves the way for the release of the full value of Jabung's gas reserves and,
coupled with the successful drilling on both the Jabung and Pangkah blocks, further
consolidates our growing position in the region."
The Jabung PSC that is situated onshore Sumatra, some 600 kilometres north west
of Jakarta, and 200 kilometres south of Singapore. The Block is operated by a
subsidiary of Devon Energy (30%), with the other partners, Kerr-McGee Sumatra
Ltd (30%) and Pertamina (10%).
| For further information contact: | |
| Andy Mitchell, Amerada Hess, London | 44 (0)20 7887 2621 |
| Mike Hughes, Amerada Hess, Jakarta | 00 62 21 572 5744 |
This press release contains "forward-looking statements" as defined
by the Securities and Exchange Commission. Such statements are those concerning
the company's plans, expectations and other objectives for future operations.
All statements included in this press release, other than statements of historical
facts, that address these activities, events or developments that the company
expects, believes or anticipates will or may occur in the future are forward
looking statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of the company.
Investors are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ materially from
those projected in the forward-looking statements.