Gas ConocoPhillips Grissik Increase Revenue

By : Hariyanto And Aldo Bella Putra | Saturday, August 26 2017 - 17:00 IWST

ConocoPhillips (Foto Ist)
ConocoPhillips (Foto Ist)

INDUSTRY.co.id - Jakarta- ESDM Minister Ignasius Jonan said that gas price change from ConocoPhillips in Grissik, South Sumatra to PT PGN (Persero) Tbk in Batam, Kepri will increase state revenue.

"The change in gas price (ConocoPhillips to PGN) in addition to maintaining the 'fairness' of oil and gas business in upstream and 'midstream', will also increase state revenue, this is positive," he said at the ESDM Ministry Office, Jakarta, Wednesday (23/8) Through its release in Jakarta, Thursday (24/08/2017)

According to him, based on further calculations, additional state revenues, due to ConocoPhillips gas price changes to PGN from 2.6 US dollars to 3.5 dollars per MMBTU for volume 22.73 BBTUD, will reach 4.3 million US dollars for the period contracts July 2017 through November 2018.

"The additional US $ 4.3 million revenue is greater than the additional potential revenue of ConocoPhillips of 2.3 million dollars in the same period," he said.

Jonan also said the price change decision was taken on the basis of fair calculation, on the principle of fair sharing between operators upstream with operators in the "midstream".

Meanwhile, he continued, the price of PGN to the consumer was fixed and did not change.

This, according to Jonan, shows the government's consistency in maintaining affordable gas prices for the community.

"The price change is only on the supply side of ConocoPhillips South Sumatera gas price to PGN Batam, while the price in the consumer is still important, the price in the 'end user' like industry and power plant does not rise, thus encouraging the national and local economy. This is the realization of energy as a development capital," he said.

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