Pertamina denies cooperation plan on subsidized fuel distribution

State oil and gas company Pertamina has denied a report saying that it plans to cooperate with Royal Dutch Shell Plc in the production and distribution of subsidized fuel in Indonesia, asserting that new players in the business are required to develop oil and gas infrastructures, such as the construction of an oil refinery and new depot, as the terms of the business.

Shell indicated last week that it was ready to cooperate with Pertamina to distribute gasoline when the price for the gasoline already reached at the economy level.

?Up to now, we have not yet made a plan to cooperate with Shell to distribute (subsidized fuel),? Pertamina?s head for communication and public relation affairs division Toharso was quoted by Investor Daily as saying in Jakarta on Monday.

Toharso also said that the oil refineries owned by Pertamina have the fuel production capacity that meet the required standard set by the directorate general of oil and gas and even higher than that, such as Euro 2.

Special for gasoline, Pertamina has also produced and distributed environmentally friendly gasoline RON 88 across Indonesia since July 1, 2006. (*)