BPMIGAS to start supply condensate to TPPI

PT Trans Pacific Petrochemical Indotama (TPPI) has agreed to settle its debts owed to the Finance Ministry and state owned oil and gas firm PT Pertamina, thus met a requirement for the purchase of condensate from the government, an official of oil and gas upsteram sector regulator BPMIGAS said.

The firm has also agreed to meet the terms set by BPMIGAS in sales appointment agreement (SAA) for the purchase of condensate.

"TPPI has thus met requirements to buy between 40,000-45,000 barrels per day of condensate from BPMIGAS," agency spokesperson Elan Biantoro told Petromindo.com on Wednesday via telephone.

"Shipment of condensate to TPPI's port in Tuban, East Java is scheduled to start today," he added.

Elan's statement, however, ran counter to reports published in newspapers today that BPMIGAS has temporarily stopped condensate supply to TPPI until the company settles its debts and obtains an SAA.

BPMIGAS deputy chairman Budi Indianto was quoted by the newspapers as saying on Tuesday that TPPI should first obtain an SAA and settle its debts to be able to receive a condensate supply.

He did not mention the amount of debts owed by TPPI to Finance Ministry, but he said that the company owed about US$600 million to Pertamina.

Pertamina had officially asked the national arbitrary council BANI to settle the debts.

Meanwhile, Amir Sambodo, president director of Tuban Petrochemical Industries, TPPI's holding company, said TPPI is committed to settle its debt and meeting all conditions set in the SAA.

He said TPPI needed the condensate supply so that it can meet its committment to supply diesel to state owned electricity firm PT Perusahaan Listrik Negara (PLN). (Godang)