Chevron wins tender to buy Belanak crude

PT Chevron Pacific Indonesia, a subsidiary of American giant Chevron Corp, has won the tender to buy the government?s oil take from the Belanak field in South Natuna Sea Block B PSC in South China Sea, according to a senior official of oil and gas upstream authority BPMIGAS.

The block is operated by American firm ConocoPhillips.

BPMIGAS? Deputy Chairman Djoko Harsono said on Thursday Chevron will buy a total of 800,000 barrels of Belanak oil from the government over the offtake period of February and April 2008.

The firm agreed to pay a premium price for the crude, he added, without specifying the price.

Under the Indonesian Crude Price (ICP) index, the government sells the Belanak crude at US$4.96 less than the Arjuna crude price per barrel, according to Djoko.

Under the production sharing system, the government takes about 85 percent of contractors? oil output, leaving the rest to the contractors. In the past, the government allowed state owned oil and gas company PT Pertamina to sell the crude, for which the firm got some fee. Now, the government offers the crude to any interested parties in auctions. (Alex)