MedcoEnergi remains committed to supplying gas for domestic markets, particularly for fertilizer industry and for PLN for replacing fuel oil consumption in their power generation plants. MedcoEnergi, through its joint venture company, Joint Operating Body PT Pertamina Medco Tomori Sulawesi ("JOBPMTS") inks a Gas Supply Purchase Agreement ("GSPA") with PT Panca Amara Utama (TAW), a local ammonia producer company.

Under this GSPA, JOBPMTS will supply gas, amounting to 55 MMSCF (million cubic feet) per day to PAU's ammonia plant, with a total gas supply volume of 248,200 MMSCF during the contract period. Gas is supplied from Senoro-Toili Block in Central Sulawesi province, with the first gas delivery is slated for fourth quarter of 2016. It is also agreed that the gas price will be formulated and linked with ammonia price at international market. The total contract values of this GSPA is estimated at US$ 1.4 billion, in which the Government of Indonesia's portion is US$ 550 million and the contractor portion is US$ 370 million (MedcoEnergi portion is USD 110 million).

Lukman Mahfoedz, President Director & CEO of MedcoEnergi stated, "The Senora upstream has been well progressing so far, it is in line with the schedule and I am optimistic that the initial gas production from Senoro gas field can be achieved by end of this year.' Lukman also added, This GSPA will give additional significant revenues to the Government of Indonesia and investors, and of course economic benefits to the surrounding local community."

* JOBPMTS partnership consists of MedcoEnergi (30%), Pertamina tutu Energi (50%), and Tomori E&P Limited (20%)