BP Migas will soon renegotiate a contract sale of liquefied natural gas from Tangguh, Papua, is associated with raising the price and volume of supplies to Chinese buyers.

Control of Operations Deputy Executive Agency for Upstream Oil and Gas (BP Migas) Rudi Rubiandini said, the agency has formed a special team for negotiation.

The establishment of the team was part of initiatives to prepare the negotiation steps in collaboration with the national team has been formed before.

According to him, the team will face constraint in negotiation is a upper limit is too low, while the pricing schemes that followed the world oil price is no need to be changed.

He said the team should be able to renegotiate immediately after the beginning of 2012, so the state also get benefits more quickly.

On the other hand, according to Rudi, if the selling price to the domestic good, the Tangguh gas production that could be supplied to meet domestic needs, its up to 20 cargoes.

Agus Pambagio Observer Public Policy said in the Tangguh contract renegotiation, the Government of Indonesia must prioritize the price change and volume of supply.

Source: Business Indonesia, Dec 29, 2011