Conoco begins natural gas deliveries to Malaysia

Petroleum News Alaska Staff

Conoco Inc. began delivering natural gas to Malaysia from its Block B in Indonesia’s Natuna Sea the week of Aug. 5. The company said Aug. 9 that initial deliveries are 100 million cubic feet per day and deliveries are expected to increase to 250 million cfd by 2007.

Conoco said deliveries are based on a natural gas sales agreement between Pertamina, Indonesia’s state oil company, and Malaysia’s state oil company, Petronas, under which Pertamina will sell 1.5 trillion standard cubic feet of natural gas to Malaysia exclusively from the Conoco-operated Block B delivered over a 20-year term.

Conoco is operator of the block and holds a 40 percent interest in the south Natuna Block B production sharing contract, along the INPEX (35 percent) and Texaco (25 percent), in partnership with the Indonesian state oil company Pertamina.

The natural gas will be delivered from the company’s “Hang Tuah” moveable offshore gas production unit via a 96-kilometer pipeline that links Indonesia’s Natuna Sea to the Petronas-operated Duyong complex, offshore peninsular Malaysia. Conoco operates the entire export pipeline system under a separate agreement.

Conoco said an Aug. 8 ceremony to mark the historic delivery was officiated by the president of Indonesia, Megawati Soekarnoputri, and the prime minister of Malaysia, Dato Seri Dr Mahathir Mohamad.