PHE still negotiating Serawak gas price hike
Wednesday, January 25 2012 - 02:01 AM WIB
PT Pertamina Hulu Energi (PHE), a subsidiary of state oil and gas company PT Pertamina, said it is still in talks with the Malaysian government for a hike in the price of low oil content gas (non ASSO) produced in Block SK 305 in offshore Sarawak, Malaysia. The company expects to get approval from the Malaysian government in this quarter.
?We are still in negotiation process. We do hope there will be a price increase,? President Director of PHE Salis Aprilian told Petromindo.com.
Earlier, PHE has has proposed for a 535-percent hike in the price of non ASSO gas produced in Block SK 305 in offshore Sarawak, Malaysia, to US$4 per mbtu from the current price of $0.63 per mbtu.
PHE is in cooperation with Malaysia?s Petronas Carigali Sdn Bhd and Vietnam?s Petrovietnam in developing the Block SK 305.
Salis said there is no major hurdle in the negotiation. ?It is just normal business to business talks,? he said.
PHE said the price of associated gas (ASSO Gas) in Malaysia is below US$1 per MMSCF, while for non ASSO gas is hovering at US$5-6 per MMSCF.
Editing by Roffie Kurniawan