ConocoPhillips-Caltex barter deal may cause loss of $36m to the state

The oil and gas barter deal between ConocoPhillips and Caltex Pacific Indonesia (CPI) might cause a loss of about US$36 million to the state, a member of the House of Representatives Djusril Djusan has said, as reported by local newspapers on Wednesday.

The legislator said that the loss could occur because the sale of the oil received by Conoco from Caltex in exchange for its gas was not reported as part of Conoco's oil production that should be shared with the government.

The total loss from the barter deal which has in place for five years could reach $36 million, he told reporters on Tuesday.

Asked about the possible loss suffered from the barter deal, Director General of Oil and Gas Arifin Takhyan said that BP Migas, the government’s agency in charge of oil and gas exploration and production, was still calculating the possible loss.

“If it is true, the government will certainly demand a compensation from both parties (Conoco and Caltex),” he was quoted as saying by Neraca.

Caltex has for years received gas from Conoco's fields in South Sumatra to support the enhanced oil recovery program of its oil fields in Riau. In return, Conoco receives crude oil from Caltex. (*)