Gas price renegotiation with Petronas nears completion

The renegotiation on the price of gas from Block B Natuna, developed by ConocoPhillips Indonesia, with Malaysia?s oil and gas company Petronas is almost completed. The parties are now waiting for approval from the Minister for Energy and Mineral Resources.

?We have reached an agreement with Malaysia. The gas price and terms of condition has been agreed by two parties. We?re now waiting for approval from the government (energy minister),? a source close to the transaction told Petromindo.com.

He said the gas price has been agreed at US$ 6 per MMBTU. The head of public relation of BPMIGAS, Gde Pradnyana, declined to comment.

It appears that both parties have resolved pending issues that have hampered the negotiation, including a requirement from Indonesian side to link the gas price with commercial price of gas.

ConocoPhillips supplies gas from Natuna Sea Block B to Petronas?s Duyong gas platform in Malaysia since 2002 under 20-year contract with volume of around 250 MMCFD. (godang)