BP, PLN in talk to extend W. Java gas contract

Anglo-American energy giant BP Plc. and state electricity firm PLN is in negotiation to extend natural gas contract from the former's Offshore NorthWest Java (ONWJ) gas fields in West Java to the latter's Muara Tawar and Tanjung Priok power plants in Jakarta, a BP official said on Monday.

"BP and PLN are in talks about the gas contract extension, which will expire in July this year. We hope we can close the deal soon," said Satya W.Yudha, a senior offcial from BP Indonesia.

He declined to reveal details, but a source said that the main stumbling block for the deal to be reached was pricing.

Gas sales contract to PLN will expire in this year. BP currently supplies around 260 MMCFD to Muara Karang and Tanjung Priok power plants.

Meanwhile, PLN's director Ali Herman Ibrahim said that PLN is looking for four-year extension, in line with ONWJ's supply capability. He said the current contract price is US$ 2.45 per MMBTU and PLN is looking to stick with the current price. (alex/godang)