Pertamina wants clarification on LNG negotiator role

The government must make clear whether it will task officials of state oil and gas firm Pertamina to negotiate with Japan?s liquefied natural gas (LNG) buyers wishing to renew LNG contracts with Indonesia.

?I will ask the government for clarification whether Pertamina will be given the task of directly negotiating with the Japanese buyers,? Pertamina?s downstream director Muchsin Bahar told Petromindo.com Tuesday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said early on Tuesday that Japan?s LNG buyers commonly referred to as ?western buyers? had expressed their intention to renew their contracts with Indonesia amounting to 12 million tons annually.

Purnomo, who had just arrived home from Japan after heading an Indonesian delegation to negotiate with Japan?s LNG buyers, said that a new team of negotiators would soon leave for Japan.

Indonesia?s long-term LNG contracts with several Japanese buyers, which amount to 18 million tons annually, will expire by 2011.

Pertamina is trying to retain the right to sell gas although the current oil and gas law, which became effective last year, strips it of preferential rights it had held for decades. (godang)