Minister issues decree to determine price of Tangguh Condensate crude type

Minister of Energy and Mineral Resources Ignasius Jonan had on March 7 issued a new decree on formula to determine Indonesia Crude Price (ICP) for Tangguh Condensate type.

The ministry said in a statement issued on Thursday that according to Decree No 1067/K/12/MEM/2017, the ICP for the Tangguh Condensate type is determined based on a formula of ICP Senipah minus US$4.52 per barrel.

The ministry said considering that the Indonesia crude for the type of Tangguh Condensate has long been produced, with stable production rate, and good quality as well as good market absorption, there was a need to adjust the previous price formula.

According to the decree, state-owned oil and gas firm PT Pertamina does not get refinery constraint fee for the Tangguh Condensate type crude considering that the price formula for the crude type has already taken into account Pertamina refinery constraint fee factor.

The formula to determine Indonesia Crude Price for Tangguh Condensate type is evaluated by the Indonesia Crude Price Team at least once a year.

Following the issuance of the new decree, the previous Decree No 630.K / 12/DJM.B/20 12 on formula to determine preliminary price for Tangguh condensate crude type is no longer valid.

Editing by Reiner Simanjuntak