Hatta says govt to announce decision on Donggi-Senoro next week

Coordinating Minister for the Economy Hatta Radjasa said on Thursday the government has made a final decision on the allocation of natural gas reserves at the Donggi-Senoro fields in Central Sulawesi owned by state owned oil and gas firm PT Pertamina and Indonesia-listed PT Medco Energi International.

The decision will be announced by Minister of Energy and Mineral Resources Darwin Saleh next week, according to Hatta.

Hatta said earlier that ideally 70 percent of the Donggi-Senoro gas should be exported and the rest for the domestic market. Pricing formula for the Donggi-Senoro gas export would be set in line with oil price fluctuation, he said.

Meanwhile, Darwin said that Vice President Boediono has asked his office to make decision on the Donggi-Senoro project. Based on direction, his will make decision on the proportion of gas for exports and domestic market.

"In the (Cabinet) meeting, (we were) suggested to alllocate more than 25 percent for domestic market," he said. (*)