Bpmigas Is Ready To Approve POFD Of Tangguh Train-3

abarrelfullabarrelfull wrote on 31 Oct 2012 06:28
Tags: asia bp indonesia lng

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Executive Agency for Upstream Oil and Gas Business Activities (BPMIGAS) is ready to approve Plan of Further Development (POFD) for Tanggung gas field of Papua.

The technical and administrative discussion on POFD has been conducted and it is ensured in compliance with the applicable regulations. “However, BP Berau Ltd as the operator of such block, needs to clarify some matters regarding the charge of the costs,” said Deputy Chairman for Planning Affairs of BPMIGAS, Widhyawan Prawiraatmadja in Jakarta, Friday (12/10).

He affirmed that BP Berau Ltd remains in need of providing clarification with respect to the efforts to sustain the state revenue from Tangguh Train 1 and Train 2 which has been produced now. “We hope that the state revenues from LNG Tangguh Train 1 and Train 2 will not be reduced due to the development of LNG Tangguh Train 3.”

BPMIGAS is expecting a mutual cooperation between the parties so that all POFD approval processes POFD for Tangguh gas field could be concluded, ”We will approve the POFD for Tangguh gas field immediately after the clarification related to some matters are submitted to us.”

In addition, BPMIGAS jointly with the Government have succeeded holding negotiation of LNG Tangguh transfer of sale which is supposed to Sempra, USA, instead to other buyers with higher LNG selling price. This encourages the increase in state revenues.

Under the contract, the LNG sale volume from LNG Tangguh refinery to Sempra is 3.7 million metric tons per year and 50 percents of if could be transferred to other buyers if the price is better. However, as a result of the negotiation with the Government, the contract could be transferred up to 90 percents with far better price. (*)

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