CNOOC, BP conclude negotiation on Tangguh LNG new price: BP Migas

Upstream authority BP Migas confirmed on Thursday that both Chinese firm CNOOC and British energy giant BP plc had principally concluded the negotiation over the revision of LNG price to be supplied from Tangguh project in Papua to Fujian city of China.

?The deal is ready to be signed, however, it still needs approval from the both governments (China and Indonesia),? BP Migas chairman Kardaya Warnika said. He declined to talk further.

BP and CNOOC signed a 2.6-MTPA LNG supply agreement in 2002, under which CNOOC has only to pay a maximum US$2.6 per MMBTU for the gas based on the crude oil ceiling prices of $25 a barrel.

Kardaya earlier said that the selling price of the LNG to be sold to Fujian would be too low, because the current international LNG price in market had reached about $9 per MMBTU as the crude price jumped to $65 per barrel. (alex)