Returns set for sale of government?s share of oil and gas

By Romel S. Gurky

Energy and Mineral Resources Minister Jero Wacik has signed a decree determining a set of returns expected from state owned oil and gas firm PT Pertamina in managing and selling the government?s share of produced oil and gas.

The Ministerial Decree No. 2576/2012, to be effective immediately, sets Pertamina?s return for managing and selling LNG at US$0.1224 per mmbtu, the Ministry said.

For gas sold through pipelines, be it to domestic or overseas buyers, Pertamina will earn $0.09 per mmbtu if it executes the sales by itself and $0.05 if it only manages the commodity.

On the oil front, Pertamina will get a fee of $0.10 per barrel if it exports the commodity. For managing and selling types of oil to be refined in Pertamina?s refineries, the firm will get a fee of $1 per barrel.

Normally, the government?s share is 85 percent in oil production and 70 percent in gas.

Editing by Dadan Wijaksana