BPMIGAS says Pertamina-Tohoku deal on Tangguh LNG valid

Upstream oil, gas authority BPMIGAS retracted its earlier statement that LNG Sales and Purchase Agreement (SPA) between state oil and gas company PT Pertamina (Persero) and Japan?s Tohoku Electric on LNG supply from Tangguh LNG project was invalid.

?The deal is valid and binding as the Minister of Energy and Mineral Resources has issued his approval on the deal the same day the SPA was signed,? Chairman R. Priyono told Petromindo.Com on Thursday.

BPMIGAS Deputy Chairman Budi Indianto on Wednesday said that the deal between Pertamina and Tohoku was not yet valid as it had yet secured approval from Minister of Energy and Mineral Resources.

State oil, gas company PT Pertamina (Persero) announced on Wednesday that it had signed LNG Sales Agreement with Japanese firm Tohoku Electric for the supply of LNG from BP-operated Tangguh LNG to Tohoku.

Under the deal, Tangguh LNG will supply 125,000 tonnes of LNG per annum to Tohoku for 15 years starting 2010.

Pertamina is acting as lead seller for Tangguh. (godang)