3 Gas Contracts has been signed, the State Revenue Potentially Receive Additional Rp 3.47 Trillion

By Humas     Date 5 Mei 2015
Category: News
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President Jokowi witnessed the signing of gas sales contracts on the sidelines of the launch of Power Plant Development Program, Bantul, Yogyakarta, Monday (4/5)

3 (three) agreements, sale and purchase of natural gas has been signed at the launch of the power plant program of 35,000 megawatts (MW) by the President Joko Widodo (Jokowi), in Bantul, Yogyakarta, on Monday (4/5) yesterday. The agreement has the potential to provide additional state revenue of Rp 3.74 trillion (299 million US dollars) during the contract period lasts.

The 3 (three) agreements consists of two gas purchase agreements (PJBG) and one main points of the agreement or the Head of Agreement (HOA). The first is the PJBG agreement between the Contractor Contract (KKKS) Conoco Phillips Grissik Ltd with PT PLN (Persero) to meet the needs of gas supply to the power sector in Sumatra, western part of Java, and Batam by 40 BBTUD (billion British thermal units per day ) for three

The second agreement is an amendment PJBG between KKKS Petroselat with PLN to meet the needs of gas supply for electricity in Riau, amounting to five BBTUD for a period of five years. While the HOA signed between PetroChina International Jabung Ltd with PT Bumi Samudra Perkasa enterprises that will supply electricity to PLN in Jambi region.

“Overall, the PJBG and the HoA signing today will provide additional revenue for the state until the end of the contract 299 million US dollars,” said the head of SKK Migas Amien Sunaryadi in a press release received in Jakarta, Monday (4/5).

Amien said that the use of all natural gas that has been contracted in line with the Minister of Energy and Mineral Resources Regulation No. 03 Year 2010 on the allocation and utilization of natural gas for Requirement Fulfillment of the Interior and Electricity Program 35,000 MW. In realization of this program, the upstream gas sector is expected to contribute as much as 13,400 MW.

SKK Migas is committed to increasing the supply of domestic gas. Since 2003, domestic gas supply increased by an average of nine percent per year. In 2013, the volume of gas to meet domestic needs greater than exports. In 2014 then, the supply of gas to domestic reach 59.8 percent while exports amounted to 40.20 percent. As for this year, domestic gas utilization is expected to rise to 62.7 percent, while exports will drop to 37.3 percent.

However, in addition to expressed support for upstream oil and gas to supply gas for the power sector, Amien also appealed to the power sector, industry, and other domestic gas users in order to understand that domestic gas prices at this time cannot be maintained the same as before, considering that most of the findings reserves gas currently are in remote areas and frontier areas with a higher risk, so it is necessary that the higher costs of field development. . (Humas SKK Migas/ES)

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