State-owned Bank Negara Indonesia, the country’s third-largest lender, is set to manage $300 million in exports proceeds from the sale of natural gas from the Sanga-sanga Block in East Kalimantan this year as part of its duty as a trustee service.
The lender set another milestone that should bolster the upstream oil and gas regulator SKKMigas’s plan to start requiring oil and gas companies to use local trustee service. It will also help boost the availability of dollars into the banking system. A trustee is independent and administers funds only for purposes stated in its trust agreement.
“SKKMigas will require the entire Indonesian [liquefied natural gas] sales contracts to follow the central bank’s rules and use the trustee paying agent service from the state-owned bank,” said Amien Sunaryadi, head of SKKMigas, on Thursday.
He was referring to Bank Indonesia’s regulation issued May of last year that requires all export proceeds to be put in the local banking system. Some exporters, though, have yet to comply. Amien said that SKKMigas would push for the regulation to become law.
Gatot M. Suwondo, BNI’s president director, said the agreement is the second time for BNI’s trustee service in handling sales of gas exports after it began providing the service for gas sales from the Mahakam gas field in March 2013.
BNI also manages trustees for gas sales from the Offshore North West Java gas field to local governments and companies.
The Sanga-sanga Block is managed by VICO Indonesia, a production sharing contract holder.