Chevron and ConocoPhillips Seal Indonesia Gas Deal

4 August 2009 (Last Updated August 4th, 2009 18:30)

Chevron Corp, the biggest oil producer in Indonesia, has signed a preliminary deal worth $2.5bn to buy gas from ConocoPhillips on Sumatra island, according to officials. Chevron needs the gas to support technology used to coax more oil from its Duri field in Central Sumatra. The techno

Chevron Corp, the biggest oil producer in Indonesia, has signed a preliminary deal worth $2.5bn to buy gas from ConocoPhillips on Sumatra island, according to officials.

Chevron needs the gas to support technology used to coax more oil from its Duri field in Central Sumatra. The technology, known as steamflood, can enhance recovery on oil fields where output is declining, according to Reuters.

The gas deal will replace a previous agreement under which Chevron swapped about 50,000 barrels per day of Duri crude oil with about 400 million cubic feet per day of natural gas from ConocoPhillips' gas field in South Sumatra.