Salawati Kepala Burung PSC stops producing LPG for Pertamina
Wednesday, January 13 2016 - 01:11 AM WIB
The owners of Salawati Kepala Burung PSC in West Papua has stopped producing LPG in bottles for state owned oil and gas firm PT Petamina (Persero)
R. Tata Mardiyanta, Resident Manager PetroChina International (Bermuda) Ltd, the former operator of the block said the contract between the owners of the block to supply bottled LPG to Pertamina expired on Dec. 31, 2015 and both parties have yet to extend the contract due to disagreement over who is responsible for the payment of value added taxes (PPN).
He explained that LPG sold in bottles is subject to PPN, while the one sold in bulk is exempted from the tax.
The PSC owners expect Pertamina to purchase LPG in bulk rather in bottles in order to avoid taxes, but thus far no contract has been signed by both parties, Tata said.
The block is able to produce 16 tons of LPG per year with gas feeds of 9 mmscfd.
The block is now operated by Petrogas (Basin) Ltd (PBL), a wholly owned subsidiary of SGX-listed RH Petrogas Limited (RHPL), which officially took over the operatorship on Jan. 1, 2016. RHPL has an aggregate 60 percent working interest in the Basin PSC through two wholly owned subsidiaries PBL and RHP Salawati Basin B.V., PetroChina and PT Pertamina Hulu Energi Salawati Basin holds the other 30 percent and 10 percent working interests respectively.
Editing by Johannes Simbolon