BPMIGAS updates Natuna gas price renegotiation
Thursday, January 12 2012 - 10:52 AM WIB
BPMIGAS, oil and gas upstream sector authority, said it is making progress over the price renegotiation of gas from ConocoPhillips-operated South Natuna Sea Block B with Malaysian oil and gas firm Petronas.
ConocoPhillips supplies gas from Natuna Sea Block B to Petronas?s Duyong gas platform in Malaysia since 2002 under a 20-year contract with volume of around 250 MMCFD.
Hardiono, BPMIGAS Vice Chairman, said both parties have basically agreed on new gas price. BPMIGAS, he said, will submit recommendation letter to the Energy and Mineral Resources Ministry for approval.
?The letter is being drafted by BPMIGAS Chairman (Raden Priyono) and will be submitted to the Energy and Mineral Resources Minister (Jero Wacik),? said Hardiono.
Spokesperson of BPMIGAS, Gde Pradnyana, said the revision of Duyong contract cannot be separated from the revision of contracts of other production sharing contractors (PSCs). ?We will announce when it is finalized,? he told Petromindo.com, but refused to elaborate any further.
Earlier, the Malaysian side opposed the clause that states that the extension of gas contract is linked with commercial price of the gas. Nevertheless, the Malaysian buyer hinted that it would accept the gas price rise to above US$5 per MMBTU.
Editing by Roffie Kurniawan