BNI named trustee and paying agent for sales of LNG, LPG from Mahakam block

State bank BNI was appointed on Wednesday the trustee and paying agent by state oil and gas company PT Pertamina (Persero), Total E&P Indonesie and Inpex Corporation as the sole contractor of LNG and LPG sales from Mahakam block.

Under the agreement signed on Wednesday, BNI will accept, administer and allocate payments from LNG and LPG contracts. All payments will be transferred to the seller?s BNI account in Singapore.

The agreement was inked by M. Afdal Bahaudir, Pertamina?s finance director, Elizabeth Proust, President Director and General Manager of Total E&P Indonesie, Yutaka Inoue, Indonesia Assets Director of Inpex Corporation and BNI President Director Gatot M Suwondo. R. Priyono, chief of the upstream oil and gas regulator (BP Migas) witnessed the signing held on the sidelines of the Asia Pacific Oil & Gas Confercnce and Exhibition in Jakarta.

Gatot said BNI through its office in Singapore was the only national bank that is granted full branch license so that it could serve as a trustee and paying agent. The mechanism is deemed as a breakthrough by the national banking industry as the transactions will involve international-scale oil players who used to seek services from foreign trustee and paying agents.

?The appointment demonstrates BNI?s commitment to supporting oil and gas industry as a national asset. Previously BNI had been appointed a partner of LPG and LNG contractors like Pertamina, Total E&P and Inpex Corporation for banking services in line with our mission: bridging the world and Indonesia,? Gatot said.

Sales of the LPG and LNG are estimated at US$18 billion over 10 years. (godang/bernard)