Cosmo Oil to cut contract to buy Indonesian LPG
Saturday, November 1 2003 - 03:05 AM WIB
Japanese company Cosmo Oil Co will likely cut its contract to purchase liquefied petroleum gas (LPG) from Indonesia when the current contract ends in December, next year, Kompas reported on Saturday.
Quoting a source carried by Dow Jones news agency, Kompas said that Cosmo Oil would cut its contract to purchase LPG from Indonesia because the Indonesian LPG was considered being too expensive.
"We will decide whether or not we will cut the contract at the middle of next year," a source said.
Cosmo Oil and four other buyers including Nippon Oil Corp, Idemitsu Kosan Co, Mitsui Oil and Gas Co and Mitsubishi Corp. buy the Indonesian LPG at a price based on the average world's LPG price set by Saudi Aramco, plus a premium of US$9.30 per ton.
The five companies expected that Indonesia would offer cheaper price when they renegotiate the new contract at summer next year. (*)