Purnomo to visit S. Korea in a bid to secure LNG contract

Minister of Energy and Mineral resources Purnomo Yusgiantoro is scheduled to visit South Korea early next month to press ahead for new LNG contract to replace current contract that would expire in 2007, an official said Thursday.

Joko Harsono, head of marketing division of Indonesian upstream body said Indonesia is seeking for new contract to replace Arun III contract, which will expire in 2007. Under the contract Arun LNG supplies around 2.8 million tons per annum of LNG to South Korea?s Kogas.

Earlier, another BP Migas official Edi Purwanto told Petromindo.Com that Kogas had indicated that it was ready to negotiate for new contract to replace Arun III contract.

Joko said prior to Purnomo?s visit, BP Migas chairman Rachmat Soedibjo will also visit Seoul on May 19 to meet with officials at the ministry of commerce, industry and energy.

He further said Indonesia would face stiff competition from other producers such as Ras Gas, Sakhalin and Northwest Shelf Venture. (godang)