PHE proposes for Sarawak gas price hike

PT Pertamina Hulu Energi (PHE) has proposed for a 535 percent hike in the price of low oil content gas (non ASSO) produced in Block SK 305 in offshore Sarawak, Malaysia, to US$4 per mbtu from the current price of $0.63 per mbtu.

PHE Business Director Richard H. Tamba said that the proposal is currently being reviewed by the Malaysian government. Meanwhile, the price of gas with high oil content (ASSO) will be maintained at US$0.63 per mbtu.

?We hope to be able to quickly reach an agreement, so that we can see a new price for this year,? Richard said.

PHE is in cooperation with Malaysia?s Petronas Carigali Sdn Bhd and Vietnam?s Petrovietnam in developing the Block SK 305.

Richard said that PHE had actually wanted to raise the price of the non-ASSO gas higher than the current proposal considering that gas price in Malaysia was already hovering at $5-6 per mbtu, but the Malaysian government had opposed it.

At the present, the block produces 2,000 barrel oil per day and 8-9 mmscfd of gas, down significantly from last year?s output of 6,000 bopd and 40 mmscfd, respectively, he added. (*)