Tangguh LNG Contract: 'Who has a finger in the Pie' ?

After lobbying Chinese Vice President Xi Jinping, Vice President Jusuf Kalla said that Xi had agreed to renegotiate a 2002 contract to suplly liquefied natural gas (LNG) from Indonesia's Tangguh Field to Fujian, China."In principle they have understood and received our proposal for renegotiate. The two countries will set up team to further discuss the issue," said Jusuf Kalla after meeting Chinese Vice President Xi Jinping as reported by Antara.
The administration of Megawati signed contract to supply LNG from Tangguh to Fujian province with the price pegged at US$2.40 per million Britishthermal unit (mmbtu) regardless of any increase in crude oil price. "if we compare the LNG Tangguh contract signed in 2002 with today's prices, the contract price is far lower then. Thats why we want to review the contract", said Jusuf Kalla. At present the international LNG price is around US$20 per mmbtu."So, the House has to investigate the Tangguh LNG contract. This is the most devastating contract ever made, this contract is the worst so far," said Jusuf Kalla as quoted by Antara weeks ago.
Meanwhile, Energy and Mineral Resources Minister Purnomo Yusgiantoro said that the case has played a major role in the hot debates over a 2002 contract calling for gas export from the massive Tangguh field in Papua, was more politics, rather than substance.
"I saw nothing wrong with the contract. 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 Yusgiantoro during his speech at business discussion few days ago. Purnomo Yusgiantoro held the same post when serving under Megawati administration.
In response, Megawati said that since Kalla once served as a a minister in her cabinet, then he should share the blame for every finger pointed at her and her ministers.
This debates seem like a war between Golkar, the nation's largets party which Jusuf Kalla as a chairman and Megawati, heads of the second large party, the Democratic Party of Struggle (PDI-P).
After a while sit on the fence, finally, President Susilo Bambang Yudhoyono was setting up a team to be led by the coordinating Minister for the Economy Sri Mulyani Indrawati to renegotiate the selling price which directly supervised by Vice Presdident Jusuf Kalla.
Currently this hottest issue -aside of Pansus BBM- increasing the tense in the Indonesian's politics. Easing of tensions, TK (Taufik Kiemas, Megawati husband) lobbying the Golkar. But, will TK's lobbying by offering the coalition will sooth the war between Jusuf Kalla and Megawati ?. Will this issue affecting Megawati's popularity? And will this also has political implication on 2009 election?. We'll wait and see.