JAKARTA (Yosefardi) – The Ministry of Energy and Mineral Resources had late October 2013 sent letter to state-owned fertilizer company PT Petrokimia Gresik (Petrogres) concerning the gas allocation from MDA-MD field in Madura Offshore Block for Petrogres’ new plant, Bisnis Indonesia reported this morning.
The new plant will have capacity of 825,000 tons of ammonia per year and 570,000 tons of urea fertilizer per year. The gas price is set at US$6.5.MMBTU with annual adjustment of 3%. The construction of new plant is targeted to complete in second quarter of 2016.
Madura Offshore Block is operated by Husky Energy, CNOOC Ltd, and Samudera Energy Ltd/Northstar/Patrick Walujo. The head of agreement (HoA) is expected to be signed in first week of December this year.