Govt to extend Tangguh fields contract to 2034

The Government has agreed to extend the contract for three blocks that will supply natural gas to Tangguh liquefied natural gas (LNG) project in Papua to 2034 to enable the project to complete its LNG sales contracts.

?The production sharing contracts for Wiriagar, Muturi and Berau will be extended to 2034,? director general of oil and gas at the Ministry of Energy and Mineral Resources Iin Arifin Takhyan said Tuesday.

The $5 billion Tangguh project, already has LNG supply contracts with China, the United States, Mexico and South Korea. The longest contract is with China?s Fujian province, which last 25 years from 2007 to 2032.

Meanwhile, the contract for Wiriagar will expire in 2023, Muturi in 2022 and Berau in 2017.

Iin also said the government may receive (from Tangguh) the same additional split agreed on Kangean block.

PT Energi Mega Persada agreed earlier to give up a 2.5 percent of its share split for oil and gas produced from the extension of the Kangean PSC to the government.

Under the PSC, the share split is 85-15 percent for oil and 70-30 percent for gas, with the largest portion going to the government and the remainder to the contractor. (alex)