Total signs paying agent agreement with BNI
Monday, February 25 2013 - 04:22 AM WIB
Total E&P Indonesie has signed a trustee and paying agent agreement (TPAA) with state-controlled Bank Negara Indonesia (BNI) for the Mahakam Block operation, upstream authority SKK Migas reported on Monday.
Witnessed by SKK Migas Chairman Rudi Rubiandini, the agreement was signed by BNI President Director Gatot M. Suwondo, state oil and gas Pertamina Finance Director Andri T. Hidayat, Total E&P Indonesie President Director Elisabeth Proust, and Inpex Corporation Senior Manager of oil and gas marketing, Hiroshi Kato, in a signing ceremony in Jakarta on Monday.
According to Total E&P Indonesie, the stakeholders of the Mahakam Block PSC has discussed the idea of using the service of local bank as trustee and paying agent since 2010.
?This has proven that Total E&P Indonesie is committed to developing the local capacity in handling all aspects of the oil and gas business,? said Elisabeth.
Rudi noted that with the agreement, paying of transactions under the sale contract of Mahakam Block will be made through BNI. ?The estimated value of the gas sale is about US$ 18 billion for the period of 10 years,? said Rudi.
He pointed out that the signing of the agreement was a milestone of efforts to empower the Indonesian local banks by the oil and gas industry.
He added that BNI is a pioneer as it is the first bank among the state banks that enters the business of trustee and paying agent.
SKK Migas hopes that the trust shown by Pertamina, Total E&P Indonesie, and Inpex will be followed by other oil and gas contractors. ?The Indonesian banks have proven their abilities. There shouldn?t be no more doubt over them,? he said.
Previously, all transactions, especially the LNG, were paid through the foreign banks as the Indonesian banks were not able to implement such financial services.
He said, however, that the Indonesian banks should not be satisfied with only the trustee and paying agent. ?Their involvement in the industry should be more expanded. In ten years, the Indonesian banks should be able to handle all of the banking services for the oil and gas industry,? he said.
With the appointment of the local banks, Indonesia will be able to further increase the local content in the energy sector.
Editing by Benget Besalicto Tnb.