Indonesia Delivers West Natuna Gas to Malaysia
Indonesia will make the first delivery of natural gas from the West Natuna area which lies just northeast of Singapore in the South China Sea, to Malaysia in a ceremony at the Tampak Siring palace in Gianyar, Bali, this week. Aside from President Megawati Soekarnoputri, Malaysian Prime Minister Mahathir Mohamad, top leaders of the oil and gas companies involved in the project, including Pertamina, Petronas and Conoco which is the leader of the consortium providing the gas supplies, will also be present at the ceremony. During the ceremony, Megawati, accompanied by Mahathir, will push the button marking the first gas delivery.
It will be Indonesia's first gas export to Malaysia, which will be transported through a 96-kilometer undersea pipeline linking the Belanak block, also known as the Block B concession, in the West Natuna area to the Duyong gas offshore facilities owned by Petronas in Malaysia waters.
The Belanak Block is co-owned and operated by Conoco with its partners Gulf Indonesia Resources, Inpex and ChevronTexaco.
Conoco and its partners will supply Petronas a total of 1.5 trillion cubic feet of natural gas worth $6.2 billion for 20 years. The government will get $2.9 billion of the total earnings.