From a block in Malaysia, Indonesia's state run oil and gas company, Pertamina, is in talks with Malaysia's Petronas and PetroVietnam Exploration & Production (PVEP) to raise the price it receives for natural gas from a block after realizing that the SK 305 Block contained natural gas that it believed could not sell for a good price.
Salis .S. Aprilian, the director of Pertamina subsidiary, Pertamina Hulu Energi was quoted in the daily's to have said Pertamina and PVEP agreed to negotiate gas price that was more economically viable and competitive.
Pertamina currently sells its natural gas to Petronas for $1 per million British thermal units, while stating that the average sale price in Malaysia was between $5 and $6 per mmBtu, Salis said it was expected to be raised to around $3.80 to $5 per mmBtu, although we would not raise it above $6.
At Block SK 305, output currently averages about 22 million standard cubic feet of gas per day and 2000 barrels of oil per day.
Negotiations are which are currently ongoing are expected to be completed within a month.
(Edited by: Blueblock)
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