Government reassigns Pertamina to manage Badak LNG plant

The Ministry of Finance through the State Asset Management Institution (or LMAN) has once again assign state-owned oil and gas firm PT Pertamina to manage and optimize the assets of the Badak LNG plant in Bontang, East Kalimantan Province.

Pertamina said in a statement the company on Friday signed an agreement with LMAN on the management of the Badak LNG plant assets.

Vice President of Corporate Communications at Pertamina Adiatma Sardjito said that that the company entered the LNG business in 1974 by developing the Badak LNG plant in Bontang. But as the Badak LNG plant has no longer been the company?s asset following the issuance of the 2001 Oil and Gas Law which led to the conversion of the status of Pertamina from state corporation into limited liability company in 2008, and consequently turning the Badak LNG plant into state asset under the management of LMAN.

The Badak LNG plant is operated by Pertamina subsidiary PT Badak NGL. Peak production of the plant was reached in 2001 at 20.25 million tons of LNG, and 1.16 million tons of LPG.

Editing by Reiner Simanjuntak