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Saudi Aramco may be allowed to engage in downstream oil and gas business

JAKARTA (rambuenergy.com) – The Indonesia government may allow Saudi Aramco to engage in downstream oil and gas business in the country by distributing the fuel products to end consumers. The move is part of the cooperation between the Indonesian and Saudi Arabia in the upstream and downstream oil and gas business.

Indonesia’s downstream business has been liberated following the enactment of oil and gas law in 2001, dismantling Pertamina’s monopoly in domestic fuel distribution. Apart from domestic players, a number of multinational oil and gas companies such as Shell and Total are already involved in fuel distribution.

The Energy and Mineral Resources Minister Sudirman Said explained that in principle, Saudi Aramco can involve in downstream oil and gas business in Indonesia. There is also an open opportunity for Saudi Aramco to cooperate with Pertamina, not only in upstream but also in downstream oil and gas business.

Sources at the energy ministry said that Pertamina appears to be reluctant to allow Saudi Aramco entering downstream business. VP Corporate Communication of Pertamina wianda Pusponegoro said there should be win-win deal if Aramco involves in the downstream business. On top of this, fuel supply to consumers must be assured.

In related development, Minister Sudirman is heading to Iran to realize early discussions with the Iranian government and oil and gas companies, including seeking assurance for importing oil. (*)

 

 

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