New GSA between PHE ONWJ, Pupuk Kujang to be completed soon: SKK Migas

By Bernard Loebs

Petromindo|Khalsa

A new gas sales and purchase agreement (GSA) between PT PHE ONWJ, operator of the ONWJ block in West Java, and state-owned fertilizer firm PT Pupuk Kujang is expected to be concluded in the near future.

Head of Gas Commercialization Division at upstream oil and gas authority SKK Migas Wara Budi Santosa said to Petromindo.com on Tuesday that his office late last month held a meeting with oil and gas contractors for revision of gas sales and purchase agreements to be adjusted with Minister of Energy and Mineral Resources Regulation No 40/2016, which stipulates lower gas price for certain industries including fertilizer.

He said that GSA between PHE ONWJ and Pupuk Kujang, and GSA between Pertamina EP and PT Pupuk Sriwijaya (Pusri) for the Ogan Komering block in South Sumatra are currently underway.

He said that the revision of GSA between PHE ONWJ and Pupuk Kujang is expected to be concluded soon, while the GSA between Pertamina EP and Pusri are still far from completion. ?The two GSAs are still being evaluated to be adjusted to the new ministerial regulation,? Waras said.

Editing by Reiner Simanjuntak