http://thejakartaglobe.com/business/petronas-to-renegotiate-for-natuna-gas/331159
September 22, 2009 Reva Sasistiya Petronas to Renegotiate for Natuna Gas Petronas Carigali, a subsidiary of Malaysian state energy producer Petronas, has agreed to renegotiate the price it pays for gas from blocks in the Natuna Sea, following strong criticism from lawmakers in Jakarta. A 20-year contract signed in 2002 provides for the export of gas from the ConocoPhillips-operated Block B in the Natuna Sea to Petronas's Duyong offshore gas facility at a fixed price of $2.80 per million British thermal units (mmbtu). Petronas finally said it would agree to revise the price in a letter to upstream oil and gas regulator BPMigas last month. "We commenced what are likely to be very tough negotiations with Petronas last week," Achmad Lutfi, BPMigas's deputy for planning, said on Tuesday. "They are seeking to trade off the gas-price revision for other concessions." Petronas is involved in a number of exploration and production blocks in Indonesia, including the Jabung block in Jambi, Sumatra, the Surumana and Mandar offshore blocks in the Makassar Strait off Borneo, the Ketapang PSC block off East Java and the offshore Muriah gas block in the Java Sea. Dito Ganindito, a member of the House of Representatives' budget commission, urged BPMigas to adopt a firm stance in its negotiations with Petronas. "BPMigas must remember that the negotiations will have an impact on state revenues," Dito said. A Petronas spokesman could not be reached for comment. Gas exports from the Natuna Sea block by subsea pipeline to Malaysia started in 2002, and have increased from an initial figure of 38.5 billion British thermal units per day (bbtud) to 209 bbtud. US energy giant ConocoPhillips currently holds a 40 percent stake in Block B, while Japan's Inpex holds a 35 percent stake. The remaining shares are held by another US oil major, Texaco. Related articles Minister Says Some Donggi Gas Might Be Exported 7:21 PM 09/08/2009 Indonesian Government Ends Six Oil & Gas Contracts 9:38 PM 30/07/2009 Government May Press PGN to Pay Entire Profit in Dividends 8:48 PM 21/06/2009 Government Offers 24 New Oil and Gas Blocks 8:42 PM 16/06/2009 [Non-text portions of this message have been removed]
