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Indonesia allocates gas sales

from Jadestone’s block to PLN

PROJECTS & THE Indonesian government has allocated gas
COMPANIES sales from Singapore-based Jadestone Energy’s
Akatara field to state-owned power utility Peru-
sahaan Listrik Negara (PLN).
Jadestone said on July 6 that the government’s
decree facilitated the development and commer-
cialisation of the field, which is located in the
onshore Lemang production-sharing contract
(PSC). The developer added that it also opened
the door to the associated production and sales
of liquid petroleum gas (LPG) and condensate to
local buyers in Jambi Province.
Jadestone said it had also signed a heads
of agreement (HoA) with PLN subsidiary
Pelayanan Listrik Nasional Batam (PLNB) on
gas sales from Akatara. arrangements are in line with the price, volume
The HoA specifies a gross sales volume of and tie-in expectations we set out when we
20bn Btu (541,100 cubic metres) per day starting acquired our 90% operated interest in this asset
in the first quarter of 2024 and a plant gate sales just over six months ago, meaning our expecta-
price of $5.60 per mmBtu ($154.90 per 1,000 tions for value-add remain unchanged.”
cubic metres) at a delivery point around 17 km He added that key workstreams were already
from the field. underway, including the optimisation of the
The Asia-Pacific focused independent paid existing front-end engineering design (FEED)
Mandala Energy Lemang $12mn for a 90% oper- study as well as ongoing preparations for con-
ated interest in the Lemang PSC in December tract tendering later this year.
2020. Lemang contains best estimate of contingent
Jadestone’s president and CEO Paul Blakeley (2C) resources of 55.2bn cubic feet (1.56bn cubic
said: “The ministerial decree facilitates the devel- metres) sales gas, 2.2mn barrels of condensate
opment of the Akatara gas field and allocates the and 5.8mn barrels of oil equivalent (boe)of LPG,
Lemang gas to meet domestic electricity demand according to an independent review of contingent
for industrial users in Batam. Importantly, these resources by qualified reserves auditor ERCE.™

Petronas, CNOOC sign

$7bn LNG supply deal

PROJECTS & MALAYSIA’S state-owned Petronas and state- AECO is a leading price benchmark for
COMPANIES owned China National Offshore Oil Corp. natural gas in Canada, with Petronas having
(CNOOC) have signed a $7bn, 10-year liquefied described it in May as “transparent”, owing both
natural gas (LNG) supply deal. to its real-time trading as well as its high liquid-
Under the deal, which Petronas announced ity, backed by large gas reserves.
on July 7, Petronas LNG Ltd (PLL) will sup- The Malaysian major sold its first spot ship-
ply 2.2mn tonnes per year (tpy) of the fuel to ment of LNG in May using the AECO price
CNOOC Gas and Power Trading & Marketing. index, noting at the time that the cargo had been
The Malaysian state major said the term sold from its Bintulu LNG plant to a buyer in the
agreement, which also includes supply from “Far East” for delivery in August.
LNG Canada once the facility becomes opera- Petronas vice-president of LNG marketing
tional, was indexed to a combination of the Brent and trading, Shamsairi M Ibrahim, said this week
and Alberta Energy Company (AECO) indices. that the deal with CNOOC reflected the “markets’
LNG Canada is slated to begin exporting cargoes receptiveness and recognition of AECO indexed
by 2024. LNG into the world’s largest LNG market”.

Week 27 09•July 9•2021 www. NEWSBASE .com P7