AKR eyeing aviation fuel business
Tuesday, October 3 2006 - 01:48 AM WIB
?AKR is planning to expand to aviation fuel distribution business. AKR, however, is still waiting for regulation from BPH Migas to be completed,? company?s Investor Relations Manager V. Suresh told Petromindo.Com.
Suresh said AKR is ready to expand as it already had fuel storages in Indonesia?s major cities such as Surabaya which would well support the plan to enter aviation fuel distribution.
Suresh said that thus far, AKR is till trying to find strategic partner to run the business. He said one of the potential partners AKR is considering is Anglo-American energy giant BP. ?AKR has been in business with BP Singapore refinery since 2005. AKR had been buying HSD from BP Singapore since September last year with volume of 3,000 kiloliters. Since June 2006 AKR bought 20,000 kiloliters per month from BP to be distributed to our Indonesian industrial customers,? he said.
Currently, aviation fuel distribution is monopolized by state oil and gas company Pertamina, but the monopoly would soon be over after downstream regulatory body completed regulation on fuel aviation distribution. A BPH Migas official said earlier that the regulation would be completed by the end of the year. (denny)