ID :
17313
Thu, 08/28/2008 - 19:23
Auther :
Shortlink :
https://www.oananews.org//node/17313
The shortlink copeid
PRESIDENT TO FORM TEAM TO RENEGOTIATE TANGGUH GAS PRICE
Jakarta, Aug 28 (ANTARA) - President Susilo Bambang Yudhoyono said he will form a team led by Coordinating Minister for Economic Affairs Sri Mulyani Idrawati to renegotiate the selling price of Tangguh gas to China.
"The coordinating minister for economic affairs will name the members of a strong negotiating team in coordination with related technical ministers. The vice president will supervise the work of the team to determine a more realistic price and do some benchmarking," the president said at a plenary cabinet meeting here on Thursday.
Yudhoyono also asked that members of the team remain free from conflicts of interest and work in accordance with the existing system and rules.
"If the renegotiation is successful and the government makes a decision later, then everything will be my responsibility as president. Therefore, we should not hesitate to renegotiate the Tangguh gas price," Yudhoyono said.
According to the president, the government had decided to renegotiate the LNG price with China after receiving a report from the Supreme Audit Board (BPK) last June 14, 2008 saying LNG contract with China signed in 2002 had the potential of causing financal loss to the state.
"If the gas sale and purchase contract is not renewed and adjusted to the global crude oil price of 120 to 140 US dollars per barrel, it will inflict a big loss on the state," the president said.
Yudhoyono added that he had asked Vice President Jusuf Kalla to broach the need for a renegotiation of the LNG price when the latter met with his Chinese counterpart Xi Jinping in Bejing recently.
"The vice president went to China last week and spoke about the renegotiation with his Chinese counterpart, and therefore we hope there is an opportunity to improve the contract," Yudhoyono said.
He explained that the government's policy on oil and gas sale and purchase contracts would not change because the government respected the ones that had existed since the governments of presidents Soekarno and Soeharto.
Meanwhile, Vice President Jusuf Kalla said the gas export contract with China which was made during former President Megawati Soekarnoputri's administration had the potential to inflict a loss of Rp75 trillion on the state.
According to Kalla, the sales price of Tangguh gas at US$3.4/mmbtu could cause the state to suffer a loss of about US$3 million per year.
"The coordinating minister for economic affairs will name the members of a strong negotiating team in coordination with related technical ministers. The vice president will supervise the work of the team to determine a more realistic price and do some benchmarking," the president said at a plenary cabinet meeting here on Thursday.
Yudhoyono also asked that members of the team remain free from conflicts of interest and work in accordance with the existing system and rules.
"If the renegotiation is successful and the government makes a decision later, then everything will be my responsibility as president. Therefore, we should not hesitate to renegotiate the Tangguh gas price," Yudhoyono said.
According to the president, the government had decided to renegotiate the LNG price with China after receiving a report from the Supreme Audit Board (BPK) last June 14, 2008 saying LNG contract with China signed in 2002 had the potential of causing financal loss to the state.
"If the gas sale and purchase contract is not renewed and adjusted to the global crude oil price of 120 to 140 US dollars per barrel, it will inflict a big loss on the state," the president said.
Yudhoyono added that he had asked Vice President Jusuf Kalla to broach the need for a renegotiation of the LNG price when the latter met with his Chinese counterpart Xi Jinping in Bejing recently.
"The vice president went to China last week and spoke about the renegotiation with his Chinese counterpart, and therefore we hope there is an opportunity to improve the contract," Yudhoyono said.
He explained that the government's policy on oil and gas sale and purchase contracts would not change because the government respected the ones that had existed since the governments of presidents Soekarno and Soeharto.
Meanwhile, Vice President Jusuf Kalla said the gas export contract with China which was made during former President Megawati Soekarnoputri's administration had the potential to inflict a loss of Rp75 trillion on the state.
According to Kalla, the sales price of Tangguh gas at US$3.4/mmbtu could cause the state to suffer a loss of about US$3 million per year.
