Tender Procurements and Contract Opportunities Indonesia

JAKARTA: Indonesia ConocoPhillips refused the request of PT Transportation Gas Indonesia (TGI) to raise the rent for the gas transmission pipeline from Grissik to Singapore and asked for the application of the rules of the toll fee was imposed for a new contract.
General Manager Jim Taylor said the company understood that the request refers to TGI Regulation of the Minister of Energy and Mineral Resources Through Business Activities Pipe, which supervised the implementation of the Oil and Gas Downstream Regulatory Body.

However, he said, increasing toll rates or fees, which in this case calculated in ConocoPhilips cost recovery, should be set for new contracts.

"It's not like we use now. So our attitude should be if there were cost increases, should be on a new contract and the agreement in a new contract," he said recently.

Previously, TGI requested an increase in toll fees from the current position of U.S. $ 0.69 to U.S. $ 1 per million Btu since the addition of investment-related damage to the pipe and installation of new compressors in Jabung.

Value of investment for both activities was estimated at more than U.S. $ 100 million.

However, the proposed increase in demand for BPH Migas it should be discussed with BP Migas KKKS and toll fees related to the status included in the calculation of cost recovery.

The entry toll in the cost recovery fee is included in the structure of the burden of gas prices for the gas transfer of power point supplied by ConocoPhilips was in Singapore under the gas purchase agreement (the gas sales agreement).

On the one hand, BPH Migas wants no change GSA so that the cost of toll fees can be excluded from cost recovery.

BPH Migas head Tubagus Haryono of them suggested that hand-over point was transferred to the gas nozzle on the side of the Grissik, Indonesia.

On the other hand, Head Utilization Division of Oil and Gas BP Migas said Ira previous Miriawati GSA changes, by moving the hand-over point would be difficult because it requires agreement of both parties.

"In addition, price changes were decided upon by the Minister [Energy and Mineral Resources]. It seems difficult