Indonesian oil at $19.47 a barrel
Indonesian oil at $19.47 a barrel
JAKARTA (JP): Indonesian oil prices on the world market during
the April to September period averaged US$19.47 per barrel,
exceeding the $16.50 set by the government in its state budget
during the current fiscal year, ending next March 31.
"Oil prices on the world market were very stable during the
last five months," the president of state-owned oil company
Pertamina, Faisal Abda'oe, said after a meeting to discuss the
enforcement of a new labor regulation in the oil and gas sector
with 42 firms operating under production sharing contracts with
Pertamina.
He said that Indonesian oil prices exceeded $20 per barrel
following the recent conflict between Iraq and the United States.
The price of Indonesia's benchmark oil, Sumatra Light Crude,
increased to $21.02 per barrel in September from $19.49 in
August, he said.
"I hope that the bullish condition will continue until the end
of this year," he said.
On development of the Natuna gas fields, he confirmed that a
number of foreign companies will be invited for a government
tender in October.
Pertamina's Director of General Affairs Baharuddin said that
negotiations are still underway with prospective buyers from
Japan, Taiwan and Thailand, which plans to receive natural gas
from Natuna through a pipeline.
According to Baharuddin, Thailand plans to buy one billion
cubic feet of gas per day. "But we're competing with Oman to sell
the gas to Thailand," he said, adding that Indonesia will offer
Thailand the gas from Natuna at $3.10 per million British Thermal
Units (BTU).
Minister of Manpower Abdul Latief used the occasion to
formally hand over the text of a new labor regulation in the oil
and gas sector that will affect the 42 companies that are
Pertamina's partners in its production sharing contracts as well
as the state-owned firm's foundation.
Abda'oe noted that the new regulation requires, among other
things, that the companies operating under production sharing
contracts with Pertamina improve the welfare of oil and gas
workers, which, according to the latest data, total 21,529
people.
"This includes an increase in transportation, health and
housing allowances and a requirement to set up pension funds," he
said.
Abda'oe said that the regulation, which has been approved by
the minister of manpower, was designed by a team of government
officials and private company representatives involved in the oil
and gas industry. (13)