Malaysia mulls oil cooperation, keen to buy coal from Indonesia: Report

Malaysian Prime Minister Mahathir Mohamad on Monday expressed desire to work with Indonesia on oil and gas exploration and to buy more coal to reduce the country's dependence on gas, AFP reported Monday.

"We have invested in plantations. But we are willing to collaborate in other areas, like (Malaysia's state energy company) Petronas to work with (Indonesian counterpart) Pertamina in oil and gas concession areas.

"We will look at Indonesia as another good place to invest in collaboration with Indonesia," Malaysian Foreign Minister Syed Hamid Albar told a press conference.

Syed Hamid also said that Mahathir told Megawati that Malaysia was keen to buy coal from Indonesia as part of its strategy to reduce its dependency on gas.

Malaysia utilities giant Tenaga Nasional Bhd has said its plan to acquire a coal mine in Indonesia's Kalimantan on Borneo island is to protect against a sudden rise in coal prices.

Tenaga Chairman Jamaludin Jarjis, quoted by Bernama news agency Sunday, said that under the firm's new policy of diversifying into coal, it would be irresponsible not to ensure a steady supply of the fuel.

Tenaga has proposed to buy the Indonesian coal mine, owned by Dynamic Acres Sdn Bhd, for 226.1 million ringgit (59.5 million dollars).

Tenaga currently depends on gas for its power generation. However, it faces higher gas costs as Petronas has asked for price increase. (*)