Salamander Energy has signed a purchase agreement with Indonesia’s Persero for the sale of gas from its Kerendan gas field Bangkanai PSC, onshore Kalimantan, Indonesia.
Under the terms of the agreement, Salamander will supply a total of 130 trillion British thermal units of gas from its gas field over a period of 20 years, with the price at $4.79 per million British thermal units and a 3% escalation per three years.
Salamander will book a net 16.5 million barrels of oil equivalent of proved reserves from the Kerendan field, comprising 84Bcf and 1.25 million barrels of condensate.
The firm will develop the Kerendan field by drilling at least three production wells, and procuring and constructing gas processing facilities and associated pipelines.
Gas deliveries are expected to be available by mid-2013.
