Indonesia, Iraq sign MoU on energy cooperation

By Puspita Maylana Devi

Energy and Mineral Resources Vice Minister Susilo Siswoutomo of Indonesia and Iraqi Deputy Minister in charge of oil upstream, Fayyadh Hasan Neema, signed a memorandum of understanding (MoU) on energy cooperation between the two countries in Baghdad on Thursday.

The MoU signing was also witnessed by Indonesia?s Economic Coordinating Minister Hatta Radjasa and Iraqi Deputy Prime Minister Hussein Abdullah Al-Shahristani. With the signing, both countries are expected to increase cooperation in the sector of energy.

Hatta Radjasa said on Friday that as part of the energy cooperation between the two countries, Pertamina had agreed to buy crude oil Basrah Light from the State Oil Marketing Organization (SOMO) of Iraq. SOMO will sell the crude oil Basrah Light to Pertamina at a volume of 33,000 barrels per day for eight months. The agreement between Indonesia and Iraq will be effective during the period of 1st May 2013 until 31st December 2013.

Iraq has also offered Indonesia to conduct explorations in one of three oil fields, namely Merjan, Kifl or West Kifl, and West Qurna-1.

?Pertamina expects to have a minority participating interest in West Qurna-1 field,? said Hatta.

Separately, Energy and Mineral Resources Minister Jero Wacik said that during his meeting with Iraqi Deputy Prime Minister Hussein Abdullah Al-Shahristani, he asked Iraq to allow Pertamina to manage fields that are already in production. ?If Pertamina can drill in Iraq and produce oil there then the production can be categorized as also Indonesian production and can be transported to Indonesia,? he said.

?It will increase our production and if necessary, all of our oil is produced abroad and then transported here,? he added.

Editing by Benget Besalicto Tnb.