Govt to sell Belanak crude at discount

Upstream oil, gas authority BPMIGAS said government will soon revise down pricing for Belanak crude to reflect the worsening quality of the crude, which is produced by ConocoPhillips from South Natuna Block B PSC.

BPMIGAS Chairman R. Priyono said Ministry of Energy will issue a decree to enable BPMIGAS to sell the crude at discount.

Priyono said mercury content in Belanak crude was now reached 1,200ppb from 54 ppb normally.

A recent tender held by BPMIGAS to sell 800,000 barrels government?s share of Belanak crude which minimum price was set at Indonesia Crude Price (ICP) failed as bidders were asking for discount, BPMIGAS Deputy Operations Eddy Purwanto said on Monday.(bernard)