ID :
17434
Sat, 08/30/2008 - 09:43
Auther :
Shortlink :
http://m.oananews.org//node/17434
The shortlink copeid
PERTAMINA, MEDCO AGREE ON US$16 BILLION GAS SALES DEAL
Jakarta, Aug 29 (ANTARA) - PT Pertamina E&P, a subsidiary of state-owned oil company Pertamina, has signed a US$16 billion natural gas sale-purchase agreement with Medco International for a period of 15 years.
The two sides signed the agreements, which consisted of two heads of agreement (HOA) here on Friday.
The first HOA document covers a sale-purchase agreement between PT Pertamina E&P and PT Donggi Senoro LNG for a 15 year period with a volume of 85 million mmscfd per day to be supplied from the Matindok gas field.
Head of the Oil and Gas Regulating Body (BP Migas), R Priyono said that the second HOA covers a joint operating body agreement among Pertamina E&P of Tomori Central Sulawesi, Medco and PT Donggi Senoro LNG. This sale purchase agreement covers a term of 15 years with a volume of 250 million mmscfd per day.
Priyono said that the total volume of natural gas covered by the agreement reached 1.7 trillion cubic feet (tcf) in the 15 year period.
"The total value of the agreement reached US$16 billion, whose price formula is based on the international oil price of US$100 a barrel," he said.
In the meantime, director for operational affairs of Medco International Lukaman Machfoed said the sale purchase formula referred to the Japan cocktail Crude (JCC) price. If the JCC was US$100 per barrel, the gas would be priced at about US$9.75 per million-million British unit (mmbtu).
"If the JCC is 120 dollars per barrel, the natural gas price could reach US$12.15 per mmbtiu," Lukman said.
The negotiation to set the formula on the price of gas for the Senoro gas field product happened to be delayed in the past because both sides failed to reach an agreement.
Both sides managed the development of the Senoro and Donggi gas fields in Sulawesi to build gas refinery plants to produce LNG.
The LNG produced by these plants are exported to the buyer Mitsubishi in Japan.
The two sides signed the agreements, which consisted of two heads of agreement (HOA) here on Friday.
The first HOA document covers a sale-purchase agreement between PT Pertamina E&P and PT Donggi Senoro LNG for a 15 year period with a volume of 85 million mmscfd per day to be supplied from the Matindok gas field.
Head of the Oil and Gas Regulating Body (BP Migas), R Priyono said that the second HOA covers a joint operating body agreement among Pertamina E&P of Tomori Central Sulawesi, Medco and PT Donggi Senoro LNG. This sale purchase agreement covers a term of 15 years with a volume of 250 million mmscfd per day.
Priyono said that the total volume of natural gas covered by the agreement reached 1.7 trillion cubic feet (tcf) in the 15 year period.
"The total value of the agreement reached US$16 billion, whose price formula is based on the international oil price of US$100 a barrel," he said.
In the meantime, director for operational affairs of Medco International Lukaman Machfoed said the sale purchase formula referred to the Japan cocktail Crude (JCC) price. If the JCC was US$100 per barrel, the gas would be priced at about US$9.75 per million-million British unit (mmbtu).
"If the JCC is 120 dollars per barrel, the natural gas price could reach US$12.15 per mmbtiu," Lukman said.
The negotiation to set the formula on the price of gas for the Senoro gas field product happened to be delayed in the past because both sides failed to reach an agreement.
Both sides managed the development of the Senoro and Donggi gas fields in Sulawesi to build gas refinery plants to produce LNG.
The LNG produced by these plants are exported to the buyer Mitsubishi in Japan.
