Pertamina, Korindo sign fuel sale and purchase agreement

State-owned oil and gas firm PT Pertamina?s Industrial Fuel Marketing (IFM) Unit signed last month an agreement with plantation firm PT Korindo Abadi for the sale and purchase of about 36,000 kilo liters per year of industrial fuel until 2021.

Pertamina said in a statement that under the transaction, IFM will provide so-called vendor held stock (VHS) scheme, under which Pertamina will ensure the availability of fuel near Korindo?s plantation operation in Asike, Papua Province, instead of the latter coming to Pertamina for the fuel.

Pertamina said Korindo is a loyal customer which has already been purchasing fuel from Pertamina since 1990.

Editing by Reiner Simanjuntak