Politics has played a major role in the hot debate over a 2002 contract calling for gas export fromthe massive tangguh field in Papua. "I saw nothing wrong with the contract," the Jakarta Post daily on Wednesday quoted Indonesian energy and mineral resources minister Purnomo Yusgiantoro as saying.
Yusgiantoro himself admitted to being familiar with the liquefied natural gas (LNG) deal, as he held the same post when serving under then president Megawati Soekarnoputri.
"I have checked all the procedures and finally reached the conclusion that there is nothing in the Tangguh contract except politics. I hope our oil and gas sector will not be affected by political posturing," said Purnomo.
A massive project, tangguh is exploiting gas fields in the Bintuni Bay area in Papua, where total proven gas reserves tally some 14.4 trillion cubic feet.
In 2002, the administration of Megawati signed a deal to supply LNG from Tangguh to China's Fujian province in a contract that drew heated criticism over the low prices.
Indonesian Vice President Jusuf Kalla was the latest to join this block, last week calling the 25-year-deal "the most devastating contract ever made and the worst," adding that it would lead to huge losses once export began next year.
Source: Xinhua
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