Pertamina seeks regional alliance
Friday, June 2 2000 - 04:30 AM WIB
Indonesia's state oil, gas and mining company Pertamina is seeking alliances with regional players, especially Malaysia, to boost the industry, according to the company's president Baihaki Hakim.
Pertamina hopes to tie up with Malaysian oil corporation Petronas to jointly develop an US$800 million (S$1.4 billion) oil pipeline product project in Jawa island, Baihaki said on Tuesday as reported by SuratkabarCom.
Pertamina plans to also offer to Petronas oil production projects in offshore areas of the Makassar Straits between Borneo and Sulawesi islands, he was quoted as saying by the Bernama news agency.
"It will be a good return on investment. There are many projects to be tapped which are good for our regional partners," he said on the sidelines of a two-day Asia Oil and Gas Conference in Kuala Lumpur.
"All this while we have been working with foreign oil companies from North America, Europe and Japan and because of this, we thought why not give the opportunity to our neighbors."
He added that Indonesia and Malaysia enjoyed a "long friendship through regional cooperation and there is no reason why both oil companies could not work together in oil production."
Oil and gas accounted for 32.8 per cent of the Indonesian government's total revenue during the last year to March, officials said. (*)