From Platts – Indonesia says close to deal with Petronas on Natuna gas price hike


Dateline 2011-08-03:

Malaysia’s state-owned oil company Petronas was willing to increase the price of gas it buys from Natuna block B by more than 100% to $6/MMBtu, Indonesian upstream regulator BPMigas’ communication head, Gde Pradnyana, said Wednesday.

But the deal still needs to be approved by Indonesia’s energy and mines minister, Darwin Zahedy Saleh, he added.

“We have reached a deal with Petronas to increase the gas price. Petronas is willing to pay more than $6/MMBtu for the gas,” Pradnyana said.

Petronas did not reply to an email on whether it had agreed to the gas price hike.

Negotiations between Malaysia and Indonesia on a higher price for gas from the offshore Natuna block B operated by ConocoPhillips has been going on since 2009.

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