Bontang processing fee set for Eni?s Jangkrik project

By Febry silaban

The government has issued a decree on the processing fee payable by Italian firm Eni SpA to the Badak LNG plant in Bontang, East Kalimantan for the processing of gas from its Jangkrik project into LNG.

?Yes, it?s true that the government has decided on the processing fee of the Bontang LNG plant for Jangkrik project which is 22 US cents per mmbtu,? Deputy of Business Support Control at upstream authority SKK Migas, M.I. Zikrullah told Petromindo.com.

The processing fee of 22 US cents per mmbtu is similar to the one set for the IDD project operated by Chevron Indonesia Company.

In 2017, the LNG plant will be transferred to the Indonesian government via the Ministry of Finance and the government has assigned state owned oil and gas firm PT Pertamina (Persero) to operate it and the firm deserves a processing fee for the task.

At present, the plant is operated by Pertamina on a non-profit or at cost basis since it is jointly owned by several PSCs such as Pertamina (55 percent), Vico (20 percent), Total (10 percent) and JILCO (15 percent).

Editing by Johannes Simbolon