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Pertamina , Petronas join forces in developing upstream and downstream business

Pertamina showcases its product Fastron at JavaJazz 2019 (Photo Credit: Pertamina’s Twitter official account)

JAKARTA (RambuEnergy.com) – Indonesian state-owned energy company PT Pertamina and Petroliam Nasional Berhad (Petronas) of Malaysia have signed a Memorandum of Understanding (MoU) to develop oil and gas business – upstream and downstream, not only in Indonesia or Malaysia but also in other countries.

Director for Investment Planning and Risk Management of Pertamina Heru Setiawan said the synergy between the two companies is a realization of the Government-to-Government between the two nations. Pertamina’s director for upstream Dharmawan H. Samsu also attended the signing ceremony.

“The MoU will become basis for developing mutually beneficial business between the two companies. The cooperation covers strategic and operational business cooperatioN,” Heru said when signing the MoU in Kuala Lumpur last week (Feb. 26).

In upstream, both parties would cooperate on research and development oil and gas exploration studies, including implementation of technology in oil and gas blocks that contains CO2, trading of oil and gas product and its derivatives (condensate and petrochemical) as well as renewable energy.

In trading business, both parties agreed to swap crude, in which crude produced by Pertamina in Kikeh, Kimanis and Kidurong, Malaysia will be exchanged with crude produced by Petronas in its Jabung and Ketapang fields, Indonesia.

Petronas was represented by EVP & CEO of Upstream Business Datuk Mohd Anuar Taib, EVP & CEO of Downstream Business Datuk Md Arif Mahmood and SVP Corporate Strategy En Mohamed Firouz Asnan.

“As an effort to secure future energy, there are a lot of things that we can join forces. This MoU is one of the right steps to create national energy security,” Heru added.

In related development, the Indonesian government has decided to set aside US$1.1 billion for oil and gas exploration as an effort to address a rising deficit of oil and gas which is expected to reach its peak in 2050.

The government also has allocated capital commitment of US$2.1 billion, of which $1.1 billion will be used for exploration activities, Energy and Mineral Resources Vice Minister Arcandra Tahar stated last week. (*)

Written by Staff Writer
Edited by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

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