State oil and gas company Pertamina and a number of Japanese gas companies have agreed on the price of Indonesian liquefied natural gas (LNG) supplies to Japan until 2011, an official says.

The agreement was reached in negotiations between Pertamina and six Japanese gas companies based in western Japan.

Speaking after attending a function to mark Pertamina*s 50th anniversary in Japan on Friday, visiting Energy and Mineral Recourses Minister Purnomo Yusgiantoro said as quoted by Antara news agency, "The negotiations have been concluded successfully. We have also agreed on the price. We got a price that is still good for Indonesia."

Pertamina president director Ari Soemarsono said the talks were in principle concluded Thursday and only documents on technical matters still needed to be wrapped up.

But both the energy minister and the Pertamina president director declined to name the LNG price, saying only it was profitable for Indonesia.

Earlier, Pertamina deputy president director Iin Arifin Takhyan engaged in negotiations with six Japanese gas companies, among others Osaka Gas and Toho Gas in Osaka.

The parties also discussed compensation for LNG shipments still owed by Indonesia through adjustments in the price.

The arrears in the LNG supplies to Japan comprised 72 cargoes.

Purnomo had earlier said the LNG price being negotiated was more than US$10 per mmbtu (million British thermal units) while the LNG price in the world market now ranged between $9 and $10 per mmbtu.

The minister said Indonesia and Japan had a long-term LNG contract valid for 10 years under which Indonesia was supplying Japan with 3 million tons per year during the first five years and 2 million tons per year during the last five years.

Every year Indonesia and Japan renegotiate the LNG price to adjust it to world market prices.

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