ConocoPhillips’ gas meter might be relocated to Indonesia

The decision whether or not the government will relocate ConocoPhillips’ gas meter to Indonesian territory will depend on the result of intergovernmental meeting between BP Migas, the directorate general of excise and customs, the directorate general of oil and gas, and the metrology and geophysics agency, Neraca reported on Wednesday.

“We hope the decision can be made on July 8, the oil and gas authority BP Migas’s chairman Rachmat Soedibjo told reporters following a meeting with members of the Commission VIII of the House of Representatives (DPR).

House members had earlier asked the government to relocate the gas meter installed by ConocoPhillips to measure the volume of gas it sells to Singapore to Indonesian territory such as Batam.

ConocoPhillips which supplies gas from Sumatra to Singapore installed the gas meter in Singapore due to the lack of confident from foreign buyers in Indonesia. This however violates the Indonesian excise and duty law.

The House members said that the installation of a gas meter outside the Indonesian territory could result in loss to the state although ConocoPhillip also regularly records the volume of gas supplied to Singapore at its transmitting terminal. (*)