Indonesia to hold talks with US, Japan LNG buyers

Indonesian upstream oil and gas authority BP Migas said LNG sales negotiation with US oil companies Marathon Oil and Sempra Energy would resume this month in Bali.

?BP Migas will talk with Sempra on October 21-22, and the following day we will hold negotation with Marathon Oil until October 25,? said BP Migas LNG marketing head Djoko Harsono.

Djoko expected BP Migas and the companies would reach substantial agreement on price, volume and terms and conditions.

Indonesia is eyeing to sell around 10 million tons per year of LNG to both companies, which are planning to build LNG receiving terminals in Mexico.

Djoko further said that Pertamina team of negotiators would meet with Japanese team representing LNG importers grouped as Western Buyers early November to begin talks on LNG contract extension. LNG contract of around 12 million tons per annum with Western Buyers would end in 2010. Indonesia is desperately trying to lure the Japanese buyers to extend the contract.(godang)