UPDATE 1: PGN to triple price of gas from ConocoPhillips? Corridor block
Tuesday, May 8 2012 - 08:26 AM WIB
American energy firm ConocoPhilips and state owned gas distributor PT Perusahaan Gas Negara (PGN) signed on Tuesday a contract on a new price for the gas from the Corridor block in central Sumatra operated by the American firm.
Under the new contract, the price of Corridor gas will be gradually increased to US$5.6 and then $6.5 per mmbtu in 2014 from $.1.85 per mmbtu under the old contract, according to a press statement from upstream authority BPMIGAS.
Meanwhile, PGN and state owned oil and gas firm PT Pertamina also signed an agreement to raise the price of gas from the latter?s gas fields in southern Sumatra to $5.5 per mmbtu and then $6 per mmbtu from $2.2 per mmbtu in the old contract.
According to BPMIGAS, the new prices will be applied for a supply volume of 412 billion British thermal unit per day (bbtud) from ConocoPhillips and 250 bbtud from Pertamina.
ConocoPhillips and Malaysian firm Petronas also signed an amendment to their previous contract on the supply gas from Natuna Block B operated by the American firm to Duyong in Malaysia. Under the amended contract, the selling price of the gas will be increased to $6 per mmbtu from $3.1 per mmbtu in the old contract.
BPMIGAS? Chairman R Priyono said the government will receive additional revenues totaling $7.5 billion thanks to the new prices, but he did not mention additional revenues to be received by both Pertamina and ConocoPhilips.
During the ceremony, Priyono also witnessed the signing of amendment to four other gas contracts and two new gas sales and purchase contracts.
| No | BUYER | APPOINTED SELLER | PRODUCER | TYPE OF AGREEMENT | CONTRACT DURATION/START | FLOW RATE (DCQ) (BBTUD) |
TOTAL CONTRACT (TBTU) |
| YEAR | |||||||
| 1 | PT Pertamina (Persero) untuk Kilang RU VI Balongan | PT Pertamina Hulu Energi - ONWJ | PT Pertamina Hulu Energi - ONWJ | GSPA | 3 / 2012 | 19 | 19.60 |
| 2 | PT Pertamina Hulu Energi - ONWJ | CNOOC SES Ltd. | CNOOC ONWJ Ltd. | GSPA | 3 / 2012 | 1 | 1.01 |
| 3 | PT Perusahaan Gas Negara (Persero) Tbk. | PT. Pertamina EP | PT. Pertamina EP | Amendment to GSPA | 20 /2006 | 250 | 1,006.00 |
| 4 | Petroliam Nasional Berhad (Petronas) | PT Pertamina (Persero) | ConocoPhillips Indonesia inc. Ltd | Amendment to GSPA | 20 / 2002 | 263 | 1,648.00 |
| 5 | PT Perusahaan Gas Negara (Persero) tbk. | ConocoPhillips (Grissik) Ltd. | ConocoPhillips (Grissik) Ltd. | Second Amendment to GSPA | 17 / 2007 | 412 | 2,310.00 |
| 6 | PT PLN (Persero) - Indralaya | PT Medco E&P Indonesia | PT Medco E&P Indonesia | Second Amendment to GSPA | 11 / 2002 | 19 - 24 | 56.18 |
| TOTAL CONTRACT VOLUME | 5,040.79 | ||||||
| NO | TYPE OF AGREEMENT | 1ST PARTY | 2ND PARTY | TYPE OF AGREEMENT | CONTRACT DURATION/START | FLOW RATE (DCQ) (BBTUD) |
| (YEAR) | ||||||
| 1 | Gas sales and purchase agreement | PT PLN (Persero) | PT Pertamina Hulu Energi - WMO | Amendment to GSPA | April 1, 2012 - June 30, 2013 | 123 |
| 2 | Gas sales and purchase agreement | PT Pembangunan Kota Batam | JOB Pertamina Talisman Jambi Merang | Amendment to GSPA | June 01, 2012 | 10 |
| 3 | Gas sales and purchase agreement | PT Pusri Palembang (Persero) | PT Pertamina EP | Amendment to GSPA | 5 th / May 1, 2012 | 166 |
Editing by Johannes Simbolon