JAKARTA, Jan. 23 -- Giant global oil and gas firms Exxon Mobil Corp and Chevron Corp have signed a deal worth 6.76 billion U.S. dollars as part of its commitment to allocate parts of their outputs to domestic industries, the Jakarta Post reported on Friday.
Exxon has agreed to deliver gas to fertilizer and related products giant PT Petrokimia Gresik and state electricity company PT PLN in deals worth 1.4 billion U.S. dollars and 1.7 billion U.S. dollars, respectively.
Exxon will deliver the natural gas from the Cepu block, where the oil giant acts as the operator in cooperation with state oil and gas firm PT Pertamina. However, it is not yet clear how much gas will be delivered.
Chevron and its partners under the East Kalimantan production sharing contracts will supply gas to fertilizer producer PT Pupuk Kaltim in the province at an estimated value of 1.6 billion U.S. dollars.
Indonesian Finance Minister Sri Mulyani Indrawati has revealed the government's plans to prioritize gas production for rising domestic consumption rather than for export in the coming years, the Jakarta Post said.
Estimates from the country's upstream oil and gas regulator, BPMi gas, show national demand for gas is set to rise steadily at a rate of 2.8 percent annually, reaching 6 billion cubic feet per day by 2020. In 2007, demand stood at 4.2 billion cubic feet per day.
In Java, where most industries are based, demand will increase by 4.9 percent annually, reaching 4.1 billion cubic feet per day by 2020.
This year's production, for instance, is expected to reach 7.3billion cubic feet per day, lower than the 7.9 billion cubic feet per day recorded in 2008.
Exxon has agreed to deliver gas to fertilizer and related products giant PT Petrokimia Gresik and state electricity company PT PLN in deals worth 1.4 billion U.S. dollars and 1.7 billion U.S. dollars, respectively.
Exxon will deliver the natural gas from the Cepu block, where the oil giant acts as the operator in cooperation with state oil and gas firm PT Pertamina. However, it is not yet clear how much gas will be delivered.
Chevron and its partners under the East Kalimantan production sharing contracts will supply gas to fertilizer producer PT Pupuk Kaltim in the province at an estimated value of 1.6 billion U.S. dollars.
Indonesian Finance Minister Sri Mulyani Indrawati has revealed the government's plans to prioritize gas production for rising domestic consumption rather than for export in the coming years, the Jakarta Post said.
Estimates from the country's upstream oil and gas regulator, BPMi gas, show national demand for gas is set to rise steadily at a rate of 2.8 percent annually, reaching 6 billion cubic feet per day by 2020. In 2007, demand stood at 4.2 billion cubic feet per day.
In Java, where most industries are based, demand will increase by 4.9 percent annually, reaching 4.1 billion cubic feet per day by 2020.
This year's production, for instance, is expected to reach 7.3billion cubic feet per day, lower than the 7.9 billion cubic feet per day recorded in 2008.
