Bontang processing fee set for IDD project
Thursday, March 5 2015 - 02:08 AM WIB
The processing fee of the Bontang LNG plant in East Kalimantan has been set at 22 US cents per mmbtu for the IDD project operated by Chevron Indonesia Company, according to industry source.
?The processing fee was (first) set at $1/mmbtu, but Chevron said it can not afford it. Finally, it was agreed that the processing fee for Chevron?s IDD project costs at 22 cents/mmbtu,? the source told Petromindo.com.
Earlier, sources said state owned oil and gas firm PT Pertamina (Persero) set the processing fee at between 30 and 40 US cents per mmbtu for any company who wants to process their gas into LNG at the plant, including Chevron which is developing gas fields in Makassar Strait, Eni which is developing the Jangkrik field in Muara Bakau block and Vico. However, Chevron considered the fee too expensive.
Beyond 2017, the LNG plant will be transferred to the Indonesian government via the Ministry of Finance. Pertamina will be assigned to operate the plant and deserve a processing fee for the task.
At present, the plant is operated by Pertamina on 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