Govt extends contracts for Tangguh shareholders

The government has decided to extend the production sharing contracts owned by the suppliers of natural gas to the Tangguh liquefied natural gas (LNG) plant.

Iin Arifin Takhyan, director general of oil and gas at the Ministry of Energy and Mineral Resources, said the contract extension would be signed mid-December.

The Tangguh LNG plant, which a consortium led by Anglo-American energy giant BP PLC plans to construct soon, will be fed with natural gas from the blocks, that is Wiriagar, Berau and Muturi.

The contract on the Wiriagar block, which is operated by Chinese oil firm CNOOC, is due on 2023, while the contract on the Muturi block, also operated by CNOOC, expires in 2022. The contract on the Berau block, which is operated by BP, is due in 2017.

All the contracts have been extended for another 20 years, according to Iin.

Also during the mid-December ceremony, the government will sign the extension of the contract owned by Indonesian private firm Energi Mega Persada on the Kangean block in East Java. The contract on the block, which expires in 2010, will be extended for 20 years.

On the same ceremony, the government will also sign the so-called ?principle cooperation contract? with state owned oil and gas company Pertamina covering all working areas owned by the state firm.

Also on the same occasion, the government will sign the contracts with 14 investors who recently won the tender for oil and gas blocks. The investors include American firm Anadarko Petroleum Corporation, which has won the exploration and production rights to North East Madura III Block, and American firm Unocal Corp, which has won the exploration and production rights to the East Ambalat block offshore East Kalimantan. (Alex)