Jakarta, 21 January 2013 – PT Surya Esa Perkasa Tbk. (“SEP” or the “Company”), is pleased to announce that its subsidiary, PT Panca Amara Utama (“PAU”) has signed a gas Heads of Agreement (“HOA”) with Joint Operating Body Pertamina Medco Tomori Sulawesi (“JOBPMTS”) today at the IndoGAS 2013 Conference & Exhibition. Under the terms of the HOA, JOBPMTS shall supply 55 MMSCFD of natural gas to PAU from its Senoro field up until December 2027. The HOA signing marks an important milestone towards achieving financial close and commercialization of PAU.
Using Senoro natural gas as feedstock, PAU shall build a 700,000 metric ton per year ammonia facility in Central Sulawesi. PAU expects to take first gas from Senoro by Q1 2015 for pre-commissioning activities. The commercial production is expected in Q3 2015 at an estimated project cost of USD 750 million. This project supports the government’s directive to maximize domestic utilization and value addition of natural gas, in addition to strengthening national food supply security by encouraging fertilizer production.
PAU’s gas price will be linked to an indexed Ammonia price. With a December Ammonia price of USD 720 per metric ton, PAU will buy gas at a price of USD 8.44 per MMBTU.
PAU looks forward to working closely together with JOBPMTS and expects to finalize a comprehensive Gas Sale Agreement (GSA) in Q1 2013 and continue to strengthen its relationship further.