The answer from the boss of Pertamina on the strange project that Ahok suspected

Jakarta, CNN Indonesia –

Director of PT Pertamina (Persero) Nicke Widyawati opened his voice on the contract import liquefied natural gas (LNG) from the Republic of Mozambique.

The contract was previously called “awkward” by Pertamina Chief Commissioner Basuki Tjahaja Purnama alias Ahok. The irregularities took the form of an irregularity in the long-term purchase contract for LNG.

Due to these irregularities, the contract is currently being audited internally.

Nicke said that the LNG import contract was not new. The contract was signed in 2019 and started to be negotiated by Pertamina and Anadarko Petroleum Corporation in 2013.

In the negotiations, the two sides discussed the potential for LNG supply from Mozambique. After the process was completed, his party agreed to sign the Head of Agreement (HoA) on August 8, 2014.

According to the agreement, Pertamina will buy 1 MTPA of LNG from Anadarko for 20 years. However, due to changes in market conditions, his party conducted renegotiations in 2017 with the addendum to the sale and purchase agreement (SPA).

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The plan is for Pertamina to buy LNG from Mozambique LNG1 Company Pte Ltd, which is an entity that sells gas produced by Anadarko’s subsidiary, Mozambique Area 1.

SPA related to the cooperation was completed in 2018 and signed by the two companies in 2019. However, Anadarko himself has released 26.5 percent of its share of ownership in Mozambique LNG to Total in September 2019.

“Broadly speaking, the contract of 1 million tons per year is the equivalent of 17 cargoes for 20 years. This will begin to be delivered in 2025,” said Nicke in a hearing (RDP) with Commission VII, Tuesday (9/2).

Nicke explained that this long-term contract uses the 2018 gas balance calculation. However, Pertamina plans to review the LNG import contract negotiations from Mozambique because the current gas balance is different from last 2018.

“The basis for Pertamina’s planning refers to the national gas balance because it is seen that there is a shortage in 2025, so corporate action is carried out,” said Nicke.

He also denied that there was a lawsuit from Mozambique regarding the LNG import contract. According to him, the contract has not yet been implemented, so it can still be reviewed.

“The lawsuit does not exist because it is effective in 2025. Today we are reviewing the overall gas supply and demand because of the principle of caution. The gas supply planning balance is different after Covid-19,” explained Nicke.

(aud / agt)


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