Pertamina, Shell sign aviation fuel business pact-UPDATE
Saturday, April 7 2007 - 05:00 AM WIB
Pertamina CEO Ari Soemarno said that the proposed JV would initially be serving Soekarno-Hatta airport in Jakarta. He, however, did not say when the JV would commence operations. Ngurah Rai airport in Bali would be the second airport to be served by the JV, Ari said.
Pertamina?s Marketing Director Achmad Faisal said under the JV, Pertamina would be able to sell fuel to Shell?s clients that have route to Indonesia, buy fuel at cheaper price from Shell?s Singapore refinery and would be get know-how on how to run world class aviation fuel supply as Shell is known as market leader in the business.
According to Faisal, Indonesia needs some 2.5 million kiloliters of aviation fuel per year, 2 million kiloliters of which, could be supplied from domestic refineries production.
Bob Moran, Shell Indonesia Country Chairman& President Director said partnership with Pertamina would be one of the company?s strategy to strengthen presence in Indonesian downstream industry.
Currently, Pertamina monopolize aviation fuel supply to airports all over Indonesia, but the government will be opening the market for competition this year.
A number of firms including BP Plc, which will partnered with JSX-listed firm AKR Corporindo had been eyeing to enter the lucrative aviation fuel supplies in Indonesia?s major airports. (godang)