BPMIGAS says Pertamina-Tohoku LNG deal not yet valid

Upstream oil, gas authority BPMIGAS said that Sales and Purchase Agreement (SPA) signed by state oil and gas company PT Pertamina with Japan firm Tohoku Electric on Tangguh LNG on Wednesday it not yet valid as it has yet approved by Minister of Energy and Mineral Resources.

?The signing can not yet be considered a binding SPA as the Minister of Energy and Mineral Resources has yet given his approval on pricing formula,? Deputy Chairman Budi Indianto told Petromindo.Com.

?They are too hasty to call it SPA,? he said, adding that without Minister?s approval, BPMIGAS would not recognized the deal.

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)