PHE to increase selling prices of gas in Malaysia

By Godang Sitompul

After a year-long negotiation process, PT Pertamina Hulu Energi (PHE), a subsidiary of Indonesia?s state-owned oil and gas firm PT Pertamina, has finally obtained the approval of the Malaysian government to increase the selling price of gas produced in the SK-305 block, which lies off the shores of Sarawak, Malaysia.

PHE President Director Tenny Wibowo told Petromindo.com Wednesday that the selling price will be raised from 0.63 US cents per mmbtu to between $2.7-3.2 per mmbtu.

He did not provide further details.

PHE operates the block together with partners Malaysia?s Petronas and Petrovietnam since 2010. The consortium has been seeking for an increase in the selling prices of the gas from the SK-305 block since last year, a key factor to allow for further development of the block, in which PHE owns a 30 percent interest.

Editing by Reiner Simanjuntak