Conoco Begins Natural Gas Delivery To Singapore

Conoco Inc. began delivery of natural gas to Singapore from the South Natuna Sea Block B, in Indonesia's West Natuna Sea last week.

The June 26 delivery makes fully operational a natural gas sales agreement between Pertamina and SembCorp Gas to sell 325 million cubic feet per day (mmcfd) of natural gas to Singapore from three West Natuna production sharing contractors, or PSC's, for a 22-year term.

The natural gas sales from the Block B PSC are expected to generate up to US $8 billion in revenue, which will be split between the Indonesian government and the three PSC partners.

Conoco delivered the natural gas from its unique moveable offshore gas production unit, "Hang Tuah," into the Conoco-operated West Natuna Transportation System (WNTS), a 400-mile subsea pipeline. The WNTS is a series of connecting pipelines that gather natural gas from 17 separate fields operated by the three PSC's in the West Natuna Sea.

The WNTS has a current capacity of 700 mmcfd, and this could eventually be expanded to one billion cubic feet per day to meet expected growth in the Southeast Asia natural gas market. Its flexible design will allow natural gas to be introduced from other areas of the Natuna Sea and will facilitate additional delivery points in the future.

The WNTS is operated via a joint venture agreement between Conoco as operator, Premier Oil and Gulf Resources. As operator, Conoco holds a 40-percent interest in the Block B production sharing contract (PSC), Inpex holds 35 percent and Texaco holds 25 percent, in partnership with Indonesian state-owned oil company Pertamina.