BPMIGAS defends Caltex-Conoco swap deal
Wednesday, December 3 2003 - 02:23 AM WIB
BPMIGAS, the government’s agency in charge of oil and gas exploration and production activities, has strongly defended the oil-for-gas barter deal between Caltex Pacific Indonesia (CPI) and ConocoPhillips, saying that the controversial barter deal has not caused any financial loss to the state, Kompas reported on Wednesday.
BPMIGAS’s chairman Rachmat Soedibjo said in Jakarta on Tuesday that the government’s revenue coming from Caltex’s oil production would not be affected by the barter deal because the cost structure of the oil company remained the same despite the swap.
Oil and gas analysts have earlier asked the government to stop the swap deal because it has significantly increased the recovery cost of Caltex that should be covered by the government
Caltex has obtained gas from Conoco since 1995 to be burned to support the company’s production enhancement program in its old oil fields. The company exchanges the gas with its crude oil from Conoco. (*)