U.K. independent Premier Oil has struck a tentative gas-sales agreement with SembCorp Gas for the sale of Indonesian gas into a chemical facility in Singapore.
The Heads of Agreement opens the way for a second gas-sales deal in less than a month for Premier.
The latest negotiations were aimed at sending gas to the Jurong petrochemical complex in Singapore. Earlier in November, the company struck a deal to supply gas to an Indonesian fertilizer maker.
Detailed negotiations for a "life of field" contract with plateau gas deliveries hints at 90 billion British thermal units per day by 2010. Initial quantities point to a maximum rate of 35 B Btu per day.
Premier’s Gajah Baru discovery and sub-sea developments Naga and Iguana will provide the gas from the Natuna Sea Block A offshore Indonesia. Gas will be delivered to Singapore via the West Natuna Transport System pipeline.
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