Energy Minister approves Gajah Baru field gas swap deal

Newly appointed Energy and Mineral Resources Minister Jero Wacik said he has approved to swap gas from Gajah Baru field in Natuna developed by Premier Oil BV with gas from ConocoPhillips? Corridor Block.

Under the swap deal, 40 million cubic feet of gas from ConocoPhillips? Corridor Block, which was supposed to be sent to Singapore buyers, will be redirected to PLTG Muara Tawar. While gas, which was supposed to be sent to Singapore buyers from Corridor Block, will be replaced by gas from Gajah Baru field.

The minister said the government will be fined with US$560,000 per day (Rp5 million) if failed to send gas to Singapore buyers. At the same time, the government will suffer potential revenue loss of about Rp15 billion per day if gas is failed to be sent to the power plant.

?With the finalization of the gas swap deal, PLN can save about Rp2-3 trillion in two years for avoiding importing fuel of 6,000 barrels per day. All parties have agreed to the swap deal,? he said.

He said the gas is sold at a price of US$17 per MMBTU to Singapore buyers and US$9 per MMBTU to domestic buyer (PLN). The gas swap deal will last for two years. (bernad/josef).