BP Migas turns down Premier?s request for gas price cut
Tuesday, October 12 2004 - 04:55 AM WIB
Oil and gas upstream authority BP Migas has turned down British company Premier Oil Plc.?s request for a lower price for additional gas supplies from West Natuna to Singapore.
BP Migas? vice chairman Kardaya Warnika told Petromindo.Com that Premier had made the request in line with its plan to supply an additional 50 million cubic feet per day (MMCFD) of natural gas to SembCorp of Singapore.
Premier, together with ConocoPhillips and Star Energy, has secured a 22-year gas contract to supply with 325 MMCFD of natural gas from West Natuna's PSCs to Singapore through a 650-km pipeline. Premier wanted to sell the additional gas supplies cheaper than the current supplies.
?We don?t want to cut the price. If Premier wants to sell it cheaper, please do so. But, the government won?t do that,? Kardaya said, adding that SembCorp could afford to buy the gas at high price.
Premier operates Natuna Block A PSC with a 28.7 percent working interest. The additional gas would come from Gajah Baru gas field of the block. (godang)