ID :
19706
Tue, 09/16/2008 - 14:26
Auther :
Shortlink :
https://www.oananews.org//node/19706
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PRESIDENT RECEIVES TANGGUH LNG PRICE RENEGOTIATION TEAM
Jakarta, Sept 16 (ANTARA) - President Susilo Bambang Yudhoyono received at his office here Tuesday the government team that is to renegotiate the price of Tangguh liquefied natural gas (LNG) Indonesia is supplying to China under a 25-year contract signed in 2002.
Set up through a presidential decree, the team is led by Acting Coordinating Minister for Economic Affairs Sri Mulyani Idrawati.
Minister/State Secretary Hatta Radjasa said the members of the team were Energy and Mineral Resources Minister Purnomo Yusgiantoro, State Minister for State Enterprises Sofyan Djalil, Oil and Gas Director General Evita Legowo, chief of the Upstream Oil and Gas Executive Board R Priyono, state oil company PT Pertamina commissioner Umar Said, and Indonesian ambassador to China Sudrajat.
Hatta Radjasa said the renegotiating team met President Yudhoyono at 10 on Tuesday morning.
He said the government had decided to form the team to renegotiate the selling price of Tangguh gas to China because the LNG contract with China was very low and had the potential of causing financial loss to the state.
President Yudhoyono said at a plenary cabinet meeting on August 28 that the coordinating minister for economic affairs would name the members of a strong negotiating team in coordination with related technical ministers, and Vice President Jusuf Kalla would supervise the work of the team to determine a more realistic price and did some benchmarking.
Yudhoyono at the time 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.
He added that if the gas sale and purchase contract was not renewed and adjusted to the global crude oil price of 120 to 140 US dollars per barrel, it would inflict a big loss on the state.
Set up through a presidential decree, the team is led by Acting Coordinating Minister for Economic Affairs Sri Mulyani Idrawati.
Minister/State Secretary Hatta Radjasa said the members of the team were Energy and Mineral Resources Minister Purnomo Yusgiantoro, State Minister for State Enterprises Sofyan Djalil, Oil and Gas Director General Evita Legowo, chief of the Upstream Oil and Gas Executive Board R Priyono, state oil company PT Pertamina commissioner Umar Said, and Indonesian ambassador to China Sudrajat.
Hatta Radjasa said the renegotiating team met President Yudhoyono at 10 on Tuesday morning.
He said the government had decided to form the team to renegotiate the selling price of Tangguh gas to China because the LNG contract with China was very low and had the potential of causing financial loss to the state.
President Yudhoyono said at a plenary cabinet meeting on August 28 that the coordinating minister for economic affairs would name the members of a strong negotiating team in coordination with related technical ministers, and Vice President Jusuf Kalla would supervise the work of the team to determine a more realistic price and did some benchmarking.
Yudhoyono at the time 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.
He added that if the gas sale and purchase contract was not renewed and adjusted to the global crude oil price of 120 to 140 US dollars per barrel, it would inflict a big loss on the state.
