Saturday, June 08, 2002 12:46:06 AM

Indonesia Set to Win China LNG Contract

JAKARTA, June 6 Asia Pulse/Antara - The Indonesian government has said it is optimistic of winning a LNG supply contract to China.

"We are optimistic we will win the contract because we meet the three main requirements to win," Energy and Mineral Resources Minister Purnomo Yusgiantoro said at a meeting with House Commission VIII here Wednesday.

Among the three requirements were competitive price and guaranteed security of supply, he said.

Gas to be supplied to China was expected to come from the Tangguh field in Papua which is operated by BP (British Petroleum) Indonesia and Indonesia's state oil comany Pertamina. The field has a proven reserve of 18.4 trillion cubic feet.

Purnomo said he believed China would observe the utmost fairness in the implementation of the international tender. "We are convinced of this although our competitors are making all sorts of approaches to the Chinese," he said.

On a differenct occasion, BP Indonesia's Vice President for Government Relations and Public Affairs Satya W Yudha said BP Indonesia's chance of winning the bid was 90 percent.

Indonesia's main competitors so far were Australia and Qatar.

Pertamina President Director Baihaki Hakim recently said the winner of tender would be announced later this month.