Pertamina, Kideco sign fuel supply extension deal

State-owned oil, gas firm PT Pertamina (Persero) said on Tuesday that it has signed fuel supply extension deal for another six years with East Kalimantan coal miner PT Kideco Jaya Agung, Pertamina?s director told Petromindo.Com on Tuesday.

Trade and marketing director Djaelani Sutomo said that the extension contract, which was signed in the end of April, is effective later this year. The 6-year contract is subject to evaluation in 3 years.

The value of the contract is around US$200 million per annum. Kideco?s fuel consumption during 2010 was estimated to reach 20,000 kiloliters per month, he said, adding that Kideco?s fuel consumption will increase every year.

Pertamina has supplied fuels to Kideco since 18 years ago.

Kideco plans to produce 31 million tonnes of coal in this year, up from last year?s output of 29 million tonnes.

Kideco is the country?s third largest miner with 50,400 ha concession. Indonesia-listed energy firm PT Indika Energy Tbk has a 46 percent stake in Kideco, while South Korean firm Samtan Co. Ltd owns 49 percent and local company PT Muji Inti Utama 5 percent. (bernard)