Government still undecided over fate of Bontang LNG plant
Tuesday, October 17 2017 - 03:04 AM WIB
Petromindo|Boim
The government is still undecided over the fate of Bontang LNG plant after 2017 when the operatorship of the Mahakam block, the largest gas supplier of the plant, is transferred from current operator Total E&P Indonesie to state-owned oil and gas firm PT Pertamina.
The Ministry of Energy and Mineral Resources and upstream oil and gas authority SKK Migas are still discussing the various possible scenarios over the operatorship and ownership structure of PT Badak NGL, which operates the Bontang LNG plant in East Kalimantan Province.
?It has yet to be decided whether the shareholder composition of PT Badak NGL will change after the Mahakam block contract is transferred to Pertamina. This will also affect the operatorship of the Bontang LNG plant,? a source told Petromindo.com on Tuesday.
Total owns 10 percent interest in Badak NGL, while Pertamina owns 55 percent, with the remainders held by Vico Indonesia (20%) and Jilco (15%).
The government has decided to transfer the Mahakam block in East Kalimantan to Pertamina after the current contract of Total and Inpex expires at the end of this year.
Deputy Minister of Energy and Mineral Resources Arcandra Tahar told Petromindo.com that the operatorship and ownership issue of Bontang LNG plant is still being discussed.
Set up in 1974, Badak NGL operates one of the world?s largest LNG plants with eight LNG trains and production capacity of 22.5 million tons per annum of LNG.
Editing by Reiner Simanjuntak