A group of West Natuna Sea operators led by Conoco Indonesia Inc. and Indonesian state oil company Pertamina have concluded an $8 billion gas sales agreement (GSA) with a consortium led by Sembawang Corp., called Sembgas, for the first international sale of pipeline natural gas from Indonesia to Singapore (OGJ, May 12, 1997, p. 31).
The group, under production-sharing contracts with Pertamina, signed a 22-year contract to supply 325 MMcfd of gas to Singapore beginning in 2001.
The Conoco-led group, including Gulf Resources (Kakap) Ltd. (Kakap Block) and Premier Oil Natuna Sea Ltd. (Block A), have prequalified contractors for engineering, procurement, construction, and facilities installation work on gas fields in the West Natuna Sea.
Total costs for development of the fields are estimated at $1 billion.
Plans call for laying a 640-km pipeline, including: 463 km of 30-in. pipe, 124 km of 24-in. pipe, 50 km of 18-in. pipe, and 11 km of 16-in. pipe. About 160 km of the pipeline will extend from the West Natuna fields to a central gathering point.
Another 470 km of pipeline will take the gas from there to Singapore's territorial waters.
Sembgas is responsible for financing an $80 million, 10-km pipeline in Singapore's waters to move the gas on to Jurong Island to be used as feedstock for the island's massive petrochemical complex, currently under development.
A pipeline extension will also transport gas to Pulau Sakra in Singapore.
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