Adaro units end cooperation agreements with Shell
Wednesday, September 16 2015 - 04:49 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk said that its subsidiaries PT Adaro Indonesia and PT Indonesia Bulk Terminal (IBT) have reached an agreement with PT Shell Indonesia to end cooperation agreements signed in 2009.
?The termination of the cooperation agreements will be effective November 1, 2015,? Adaro said in a statement Tuesday.
Adaro Indonesia in December of 2009 signed an agreement with Shell, under which the latter would supply fuel to support the former?s mining operations in South Kalimantan.
In November 2009, IBT, which is 100 percent owned by Adaro Energy, and is the operator of the Pulau Laut Coal Terminal on Pulau Laut Island in South Kalimantan, signed an agreement with PT Shell for the latter to develop fuel storage and other fuel facilities on a land in the island owned by IBT. The agreement was supposed to end in 2022, by which time Shell would transfer the fuel facilities to IBT, but can be terminated earlier upon agreement by both parties.
Adaro Energy said in the Tuesday statement that following the agreement with PT Shell, the latter shall transfer to IBT its entire fuel infrastructure facilities at the Mekar Putih port.
Editing by Reiner Simanjuntak