Indonesian state firms to sign $1b deal with South Korean firms
Sunday, 22 July 2007
JAKARTA, July 21 (Xinhua): Indonesia's state-owned oil and gas firm Pertamina and power utility PLN are expected to sign contracts worth 1 billion US dollars with a number of South Korean companies after one year of negotiations on energy sector.
The agreements are expected to be signed during the visit of Indonesian President Susilo Bambang Yudhoyono to South Korea next week, English daily The Jakarta Post reported today.
Pertamina would sign a joint venture agreement with E1, a subsidiary of South Korean conglomerate LG, to build a liquefied petroleum gas (LPG) plant in South Sumatra, the company's president director Ari Sumarno was quoted as saying.
The plant, which will be 66 per cent owned by Pertamina and 34 per cent by E1, will cost up to 155 million dollars and will have a designed capacity of 350 million cubic feet per day.
The construction of the plant will begin in 2008, and commercial production is expected to begin in the first half of 2010.
In the upstream sector, Pertamina will sign letters of intent ( LoIs) with the State-run Korea National Oil Corporation (KNOC) and energy firm SK Corp. for joint exploration work in the eastern part of Indonesia.
Meanwhile, PLN will continue its discussions with Korea Electric Power Corp. (Kepco) on the proposed construction of a gas- fired power plant in Bojonegara, Banten, with an installed capacity of 750 megawatts (MW).
It is hoped that the plant will be able to be completed in 2009 or 2010.
Other projects that will be discussed include the proposed construction of a 400-MW coal-fired power plant in South Sumatra and the country's first direct coal liquefaction plant in East Kalimantan, which will have a capacity of 5,000 barrels per day.
The agreements are expected to be signed during the visit of Indonesian President Susilo Bambang Yudhoyono to South Korea next week, English daily The Jakarta Post reported today.
Pertamina would sign a joint venture agreement with E1, a subsidiary of South Korean conglomerate LG, to build a liquefied petroleum gas (LPG) plant in South Sumatra, the company's president director Ari Sumarno was quoted as saying.
The plant, which will be 66 per cent owned by Pertamina and 34 per cent by E1, will cost up to 155 million dollars and will have a designed capacity of 350 million cubic feet per day.
The construction of the plant will begin in 2008, and commercial production is expected to begin in the first half of 2010.
In the upstream sector, Pertamina will sign letters of intent ( LoIs) with the State-run Korea National Oil Corporation (KNOC) and energy firm SK Corp. for joint exploration work in the eastern part of Indonesia.
Meanwhile, PLN will continue its discussions with Korea Electric Power Corp. (Kepco) on the proposed construction of a gas- fired power plant in Bojonegara, Banten, with an installed capacity of 750 megawatts (MW).
It is hoped that the plant will be able to be completed in 2009 or 2010.
Other projects that will be discussed include the proposed construction of a 400-MW coal-fired power plant in South Sumatra and the country's first direct coal liquefaction plant in East Kalimantan, which will have a capacity of 5,000 barrels per day.