CNOOC, BP expected to reach deal on Tangguh this month

By Godang Sitompul

The government expected a business-to-business deal can be clinched by BP Plc, the leader of the Tangguh consortium, and CNOOC, the owner of the Fujian LNG terminal in China on the new price of Tangguh gas for Fujian, a senior official at the Ministry of Energy and Mineral Resources (MEMR) said on Tuesday.

?We hope a business-to-business deal between BP and CNOOC can be clinched before the end of this year. There are already positive signals (for the deal),? Upstream Director at the Directorate General of Oil and Gas Hendra Fadly told Petromindo.com.

He said a government team comprising officials from the directorate general of oil and gas and upstream authority SKK Migas is heading for China this evening.

President Susilo Bambang Yudhoyono has formed a team headed by the minister of energy and mineral resources and the secretary to SKK Migas chairman, tasked to renegotiate the price of Tangguh LNG for Fujian. The renegotiation team is given until the end of this year to complete the task.

MEMR said in a press release Director General of Oil and Gas A Edy Hermantoro recently visited Fujian where he met with the head of Fujian Development Reform Committee to discuss the issue. It was the fourth renegotiation held by the Indonesian and Chinese team on the issue.

The press release however did not provide details on the results of the fourth renegotiation.

Editing by Johannes Simbolon