Minister issues decree on price formula for Ketapang crude
Friday, May 12 2017 - 01:52 AM WIB
Minister of Energy and Mineral Resources Ignasius Jonan has issued Decree No 1066 K/ 12/ MEM/20 17 on the formula to determine Indonesia crude price (ICP) for Ketapang crude type.
According to the decree, a copy of which was obtained by Petromindo.com on Thursday, the Indonesia crude price for Ketapang crude is set at ICP Arjuna plus US$1.84 per barrel.
According to the decree, state-owned oil and gas firm PT Pertamina does not get refinery constraint fee considering that the basis for the price evaluation is based on willingness to pay by the market.
The formula of Indonesia crude price for Ketapang crude type is evaluated by Indonesia crude price team regularly at least once in a year.
The new decree annuls the previous Decree No 584 K / 12/ DJM.B/ 2015 on formula to determine preliminary price for the Ketapang crude.
Editing by Reiner Simanjuntak