Govt, Eni discussing Jangkrik?s commercial aspects
Wednesday, February 18 2015 - 09:24 AM WIB
The government and Italian firm Eni SpA are currently discussing the commercial and economic aspects of gas from the Jangkrik field project in Muara Bakau PSC, including the possibility of the domestic market absorbing more of the gas at economic price, according to a senior official at the Ministry of Energy and Mineral Resources.
"Jangkrik?s gas will be 50 percent allocated for domestic market, up from only 30 percent before," I Gusti Nyoman Wiratmadja, acting Director General of Oil and Gas at the ministry told Petromindo.com on Tuesday, after holding a meeting with Eni's Executive Vice President for Asia Pacific Franco Polo at his office in Jakarta.
He said the marketing of the gas is still in progress. "Hopefully a deal could be reached in the near future, so that the onstream target can be achieved in the first quarter of 2017," Nyoman said.
Statet owned oil and gas firm PT Pertamina is reportedly interested to buy the gas from Jangkrik
An industry source said that Polo came to the director general?s office to talk mainly about the price of the gas. "There is a disparity between the economic price of the gas and the price offered by Pertamina," the source said, without providing details.
Meanwhile, VP for LNG, Gas & Power at Gas Directorate of Pertamina Didik Sasongko Widi confirmed to Petromindo.com that Pertamina and Eni are still discussing the allocation of Jangkrik?s gas for the state firm.
"Pertamina and Eni want a volume of 1.4 mtpa from the field to be allocated to Pertamina, but there has been no formal allocation by the government. It is still a B2B deal," he said, adding that its deal could be reached soon.
Didik admitted there is a disparity between the economic price of the gas from the Jangkrik project and the price proposed by Pertamina. "It?s important that the price should be in line with the economics of the Jangkrik?s project, fertilizer firms (as end buyers) and Pertamina" he added.
Pertamina is planning to supply the 1.4 mtpa gas from Jangkrik to West Java, Cilacap and Aceh, according to Didik.
Editing by Johannes Simbolon