JAKARTA (Yosefardi) – The upstream oil and gas regulatory body (SKK Migas) has assigned state oil ang gas company PT Pertamina to sell liquified natural gas (LNG) of the state alongwith crude oil and condensate.
Commercial deputy of SKK Migas Widhyawan Prawiraatmadja said this assigment will be effective for new contracts, including Masela block, not for existing contracts such as Tangguh block.
Energy and Minerals Resources Minister Jero Wacik earlier said SKK Migas will not manage crude oil and condensate products belonging to the state.
Pertamina is set to swap crude oil with other producers to match with the specification of the refineries. It is also assigned to modify refinery for accomodating the oil type, or export crude oil through a tender mechanism.
Indonesia now produces 800,000 barrels oil per day (boped) and 1.24 million barrel oil equivalent.
The government of Indonesia holds 85% of oil production and 70% of gas production. While contractors hold 15% of oil production and 30% of gas production.