Pertamina, Kideco sign new oil purchase contract
Monday, July 9 2012 - 07:41 AM WIB
State oil and gas company PT Pertamina said that it had at the end of last month signed an oil fuel purchase contract worth Rp 14 trillion with PT Kideco Jaya Agung.
Hanung Budya Yuktiakto, Marketing Director of Pertamina, said in Jakarta on Monday that under the contract, which was designed under the scheme of Vendor Held Stock (VHS), Kideco Jaya Agung would get oil fuel supply during a period of 6 years from July 2012 until 2017.
?The contract is a development of the contract agreed last year. Previously, it was purely an agreement to procure oil fuels, but now it is added with our services under the VHS scheme. That means Pertamina will be in charge of processing the oil fuels and distributing them to Kideco?s oil fuel storage, so that Kideco can just focus on its mining activities ,? Hanung told Petromindo.com on Monday.
With the system, the diesel fuel will be transported by Pertamina from its supply point in Balikpapan to the tanks managed by Kideco. The payment will be made based on the amount of diesel fuel channeled out from the tanks.
?Under the VHS scheme, we sent the diesel fuel to the Kideco?s tanks. As long as it is still in the tanks it still belongs to us. But when it is taken out then we consider it as their realized purchase,? he added.
Editing by Benget Besalicto Tnb.