{
    "success": true,
    "data": {
        "id": 1265876,
        "msgid": "bp-agrees-to-release-privilege-1447893297",
        "date": "2002-04-26 00:00:00",
        "title": "BP agrees to release privilege",
        "author": null,
        "source": "JP:IWA",
        "tags": null,
        "topic": null,
        "summary": "BP agrees to release privilege Moch. N. Kurniawan, The Jakarta Post, Jakarta BP Kangean, a unit of British American oil and gas firm BP Plc., has finally agreed to release its privilege status in the supply of gas in East Java, according to a reliable source. The source said on Thursday that the agreement was reached last week during talks with the government. \"BP (Kangean) agreed at the end of last week to release its privilege (status),\" he said.",
        "content": "<p>BP agrees to release privilege<\/p>\n<p>Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n<p>BP Kangean, a unit of British American oil and gas firm BP Plc.,<br>\nhas finally agreed to release its privilege status in the supply<br>\nof gas in East Java, according to a reliable source.<\/p>\n<p>The source said on Thursday that the agreement was reached<br>\nlast week during talks with the government.<\/p>\n<p>\"BP (Kangean) agreed at the end of last week to release its<br>\nprivilege (status),\" he said.<\/p>\n<p>The government had been negotiating with BP to end the<br>\nprivilege status as the company could no longer supply sufficient<br>\ngas to the East Java province due to depleting reserves.<\/p>\n<p>Ending BP's concession would allow other players to enter the<br>\nEast Java gas market, thus avoiding an imminent gas shortage<br>\nwhich could disrupt the operation of large industries in the<br>\nprovince including the power plan unit of state-owned electricity<br>\ncompany PLN.<\/p>\n<p>BP Kangean, under a contract signed by Pertamina in 1980,<br>\nholds a concession to supply gas from the adjacent Pagerungan<br>\nisland via underwater pipeline to East Java at 600 million<br>\nstandard cubic feet per day (mmscfd) until 2010.<\/p>\n<p>According to the contract, other companies are only allowed to<br>\ndeliver gas in the province if demand exceeds 600 mmscfd or if BP<br>\nis temporarily unable to provide sufficient supply.<\/p>\n<p>But BP Kangean may not be able to meet its gas supply contract<br>\nfor much longer as its gas production had been declining due to a<br>\ndepletion in gas reserves.<\/p>\n<p>BP Kangean gas output stood at 300 mmscfd in September last<br>\nyear, but was down to 259 mmscfd in February this year.<\/p>\n<p>The government has said that several gas companies including<br>\nPertamina, Amerada Hess, Kodeco, and Mobil Cepu and Madura had<br>\nexpressed readiness to supply gas in East Java.<\/p>\n<p>Some of the companies are ready to supply gas starting mid-<br>\n2003.<\/p>\n<p>The source said the government was still considering to<br>\nguarantee the market for BP's gas once its gas output increase<br>\nagain.<\/p>\n<p>The government originally projected a gas shortage in East<br>\nJava to occur in 2004.<\/p>\n<p>But PLN claimed that the gas shortage had already occurred<br>\nsince the beginning of this year, forcing the company to seek<br>\nindustrial diesel fuel as a substitute.  Pertamina has also said<br>\nthat it would import diesel fuel to anticipate the fuel shortage.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bp-agrees-to-release-privilege-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}