According to BP Migas chief Rachmat Sudibyo, the Indonesian oil and gas watchdog body would still hold further talks with the two US companies because of the need for further discussion concerning "commercial and technical issues to pave the way for a gas sales agreement."

Sudibyo was speaking to reporters at a recent press conference.

The regulatory body's marketing division chief, Djoko Harsono, confirmed that the two American companies were looking to buy between four million and six million tonnes per year of LNG each.

Indonesia is the world's top exporter of LNG but its traditional markets have always been South Korea and Japan.