Thursday, 24th August 2017

Indonesia, UAE cooperate on purchase of crude oil

19th May 2017 | 9.845 Views
Jakarta (ANTARA News) - Energy and Mineral Resources Minister Ignasius Jonan and United Arab Emirates (UAE) Energy Minister Suhail Mohammed Faraj Al Mazroui signed an agreement on the purchase of liquefied petroleum gas (LPG) and crude oil from the UAE.

Minister Jonan declared the direct purchase of liquefied petroleum gas would be done between the national oil companies of Indonesia and the UAE, namely Pertamina and ENOC (Emirates National Oil Company).

"Today, we discussed some potential investment from the UAE in Indonesia, including oil and gas and their transaction, as directed by President (Joko Widodo), that is, direct purchase of LPG and crude oil from ENOC to Pertamina. So, we hope it will not be carried out through third parties," said Jonan, while receiving the UAEs Energy Minister at the Energy and Mineral Resources (ESDM) Ministry Office here, Thursday.

He explained the two sides also discussed the plan to develop the Ruby Gas field, Sebuku Block, managed by Mubadala Petroleum, a UAE oil and gas company.

In addition to the oil and gas sector, Jonan mentioned the investment cooperation between the two countries also included the transportation sector, namely in ports and applications for increased flight frequency from the UAE to Indonesia.

"The two sides are also discussing agriculture and the proposal to improve the tax treaty between the two countries, which has been long made and adjusted to the needs of Indonesia and the UAE taxation," remarked Jonan.

On the same occasion, UAE Energy Minister Suhail Mohammed Faraj Al Mazroui mentioned the current investment value between Indonesia and the UAE had reached US$2 billion.

"The current investment value of the UAE and Indonesia is about $2 billion, but the potential investment we see with the delegation could reach $5 billion for new investment," Minister Mohammed Faraj stated.

At a later stage, Pertamina and ENOC will discuss imports or direct purchases of LPG and crude oil on a business-to-business basis B-to-B.

"ENOC has trade procedures, but we are not talking about it now. I think there is no problem, and we welcome the direct purchase," added Mohammed Faraj.(*)