Eric Watkins
Senior Correspondent
LOS ANGELES, Nov. 6 -- Singapore Petroleum Company Ltd. (SPC) has signed a memorandum of understanding with Indonesia state firm PT Pertamina for joint exploration and production projects valued at $1 billion.
Pertamina Pres. Ari Soemarno said the MOU underlines the commitment of the two companies to working together on projects within Indonesia as well as overseas. The project includes oil and gas exploration, development, and production, he said.
Soemarno said future cooperation with SPC could be expanded to the downstream sector, and possibly include the trading and oil processing industries.
Meanwhile, Soemarno said, a number of Pertamina's oil and gas fields were being considered for joint development under the MOU, including at least eight fields in North Sumatra, among them the Besi Tang gas field.
SPC Chief Eecutive Koh Ban Heng said the MOU underscores SPC's strategy of building regional alliances and cooperation with the aim of creating sustainable growth and development across the oil and gas value chain.
Last week, SPC said it was looking at retail opportunities in Indonesia and that it already has applied for an oil trading license there.
Local media quoted an Indonesian government official as saying that a license could be granted soon to SPC, which is likely to supply Indonesia with 10,000 tonnes/month of oil products.
Contact Eric Watkins at [email protected].
