SKK Migas to soon hold control of Bontang LNG plant

Petromindo|Lucky

Upstream oil and gas authority SKK Migas starting January 1 of 2018 will hold operational and cost control of the Badak LNG plant in Bontang, East Kalimantan Province.

SKK Migas said in a statement that its Chairman Amien Sunaryadi signed on Friday an agreement on the basic terms for the transfer of the control from the Pertamina Joint Management Group (JMG). The agreement was signed with related parties including PT Badak NGL, current operator of the LNG plant, and contractors of a number of oil and gas blocks including Tengah, Sanga-Sanga, East Kalimantan, Makassar, Rapak, Muara Bakau, and Mahakam.

?This is a new era for SKK Migas in managing gas processing at the Badak plant,? Amien said in the statement, adding that the transfer of the control over the operation of the Bontang LNG plant was in line with the recommendations made by the Supreme Audit Agency (BPK) to help ensure optimization and efficiency.

Amien said that for 2018, LNG production from Badak NGL will account for 50 percent of national production. ?Next year, the value of sales of LNG processed at the Badak NGL is projected to reach Rp 32.5 trillion,? he said.

Editing by Reiner Simanjuntak