Pertamina-Adaro cooperation eases oil distribution

May 13:

The cooperation between state oil and gas company Pertamina and publicly listed mining company PT Adaro Energy on the use of the latter’s storage facility on Laut Island, South Kalimantan, will ease Pertamina’s oil distribution activities, a minister has said.

“The cooperation will make it easier for Pertamina to supply fuel in the region,” said Energy and Mineral Resources Minister Sudirman Said as quoted by Antara. He was speaking in a press conference after the signing of agreement ceremony in Jakarta on Wednesday.

Pertamina president director Dwi Soetjipto said Pertamina would make use of Adaro’s storage facility with a capacity of 72,000 kiloliters (kl).

On Wednesday, Pertamina and Adaro also agreed to cooperate on the sales and purchase of diesel fuel. Under the agreement, Pertamina would supply 550,000 kl of diesel worth Rp 7 trillion (US$532 million) to Adaro per year.

Dwi said however, that the diesel supply could be increased anytime, on Adaro’s request.

Adaro Energy president director Garibaldi Thohir said the cooperation would be mutually beneficial.

“Adaro needs a supply chain while Pertamina needs a market,” he said.

Garibaldi said Pertamina would start to supply Adaro in July for 10 years after the signing of the agreement.

The ministry’s director general for oil and gas IGN Wiratmadja Puja said it was hoped that the cooperation could be followed by other state-owned enterprises and private companies. (ebf) (++++)

Source:  m.thejakartapost.com/news/2015/05/13/pertamina-adaro-cooperation-eases-oil-distribution.html?