Pertamina and BP Agree on Indonesian Gas Deal

Pertamina and BP Muriah Ltd have agreed to jointly develop a gas field north of Java island. Budiman Parhusip, vice president of Pertamina unit East Java Growth Gas, said gas from the Kepodang field will be piped to a power plant at Semarang in Central Java.

The Muriah block where the field is located has gas reserves of some 500 billion cubic feet and was discovered in 1992. Work on the field will start early next year and is estimated to take approximate 32 months to complete. The gas field is expected to start commercial operations in 2005, with construction costs estimated at about $400 million.