Pertamina to sign LNG contract extension deal with Japan Jan

State oil and gas company PT.Pertamina will sign heads of agreement (HoA) with Japanese LNG consumers known as Western Buyers by the end of January for the extension of LNG supply from Bontang LNG plant, East Kalimantan, a senior Pertamina official said on Sunday.

Vice President Director Iin Arifin Takhyan told Petromindo.Com on Sunday that currently both teams are working on legal drafting of the HoA.

According to Iin, Bontang will extend contract to supply 25 million tonnes of LNG to Western Buyers for 10 years starting 2011. Western Buyers, he said have agreed to drop 90 cargoes of LNG from the previous contract in 20012-2011 period, thereby freeing Bontang from obligation to make up for the cargoes it failed to deliver on schedule. One cargo is equal to about 125,000 tonnes of LNG.

Iin also said that both parties had agreed on price formula and shipping arrangement. He did not give detail.

Gas supply for the extension would entirely be provided from Total SA-operated Mahakam PSC. (godang)