EWC to Supply Gas from Sulawesi's Wasambo Gas Fields to Perusda Sulsel

Australia’s Energy World Corp. Ltd. reported Tuesday the signing of Gas Sales Agreement (GSA) between its wholly owned subsidiary Energy Equity Epic (Sengkang) Pty Ltd. (EEES) and Perusahaan Daerah Sulawesi Selatan (Perusda Sulsel) Oct. 20 during the opening session of 2015 Asia Pacific Oil and Gas Conference and Exhibition in Nusa Dua, Bali, Indonesia. The signing ceremony was witnessed by Chairman of SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia) who granted his approval for the signing Oct. 16. Under this agreement, EEES will be able to supply 40-70 million standard cubic feet per day (MMscf/d) initial feedstock gas for the first train of Sengkang LNG Modular Plant from four wells within Walanga, Sampi-Sampi, and Bonge (Wasambo) gas fields.

Perusda Sulsel is acting as the gas off-taker pursuant to prevailing laws and regulations which enable s Perusda Sulsel, as regional government owned business unit, to directly purchase the gas from Production Sharing Contract (PSC) operator without going through an open tender process. Simultaneously, Perusda Sulsel together with PT South Sulawesi LNG then will jointly sell the LNG to PT PLN (Persero) (PLN), a state-owned electricity company which has been our long-standing client as power purchaser.

The signing of this agreement is another major step in our LNG development program and our planning to ensure the availability of clean energy as a feedstock for power plants in Eastern Indonesia. It will also enable us to finalize our negotiations with PLN for the supply of LNG and thereafter to close the project financing with Bank Mandiri and its banking syndicate.


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