Pertamina and Largo Vista signs Vietnam oil trade deal

US based company Largo Vista Group Ltd. announced on Wednesday it had entered into an agreement with Pertamina Energy Services Pte Ltd. (Petral) a wholly owned subsidiary of state oil and gas firm Pertamina, whereby Largo Vista committed to securing purchase requirements for oil products in Vietnam, while Pertamina will ensure the supply.

Largo Vista said it would also meet the crude requirement by Petral by providing Vietnamese grades to Petral.

Largo Vista Group is an energy company that distributes liquid petroleum gas (LPG) in Southern China.

``It is a win-win situation for Largo Vista as our company already has a client base of oil products purchasers, specifically gasoil in Vietnam, while Petral has access to supply sources,'' said Deng Shan, Largo's Chairman. ``This agreement will provide a stepping-stone for Petral to enter into Vietnamese oil products market.''

``Petral wishes to develop the market in Vietnam for oil products with the assistance of Largo Vista,'' said Soekono Wahjoe, Petral's president.

Largo Vista said the agreement might lead to other agreements or arrangements in the oil trade business in China later, as China opens its oil and gas markets to foreign investors following its entry into the World Trade Organization last year.

``We are keen to expand the alliance into China for its huge market and the business environment will be improved as government is now deregulating the market,'' Wahjoe said.

Pertamina, last week, signed an agreement with China's largest oil and gas company, Patrician, to partnership in oil and gas exploration and production in Indonesia. (alex)