According to SKKMIGAS, a governmental body for management of upstream oil and gas business activities, the contract price applicable to the LNG produced by Tangguh LNG, Indonesia and shipped to China National Offshore Oil Corporation (CNOOC) has been revised, where the parties agreed to revise the price-calculating formula for 2014 shipments to “JCC (Japan Crude Cocktail) x 6.5% + US$1.50” per mmbtu and to remove the ceiling applied to JCC. The price under the new formula without the ceiling gives US$8.65/mmbtu for 2014 based on JCC at US$110/bbl, up 160% from the price calculated under the old terms.
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