New price agreement for Natuna gas to be signed tomorrow
Wednesday, May 2 2012 - 10:53 AM WIB
Malaysian state owned oil and gas firm Petronas Bhd and American oil and gas firm ConocoPhillips are scheduled to sign an amendment to the contract on gas supplies from Natuna Block B in Riau Archipelago, allowing the American firm to get a higher price for the gas.
?The amendment to the contract will be signed tomorrow (Thursday) in the presence of the Minister of Energy and Mineral Resources (Jero Wacik),? I Gde Pradnyana, Head of Public Relation, Security and Formality at upstream authority BPMIGAS, said on Wednesday.
BPMIGAS and Petronas have previously agreed to increase the selling price of gas from the block to US$6 per mmbtu, from $3.1 per mmbtu. ConocoPhillips have sold gas produced from the block to Petronas since 2002 amounting to 250 bbtupd.
Gde said with the new selling price, the Indonesian government is set to gain $1 billion in additional revenue during the period of 2012-2022.
Editing by Johannes Simbolon