Pertamina signs contract with Adaro for fuel supply, storage management
Friday, September 11 2015 - 03:53 PM WIB
State owned oil and gas company PT Pertamina (Persero) signed on Friday a contract with IDX-listed coal firm PT Adaro Energy Tbk, allowing the former to supply the latter with oil fuel and to lease the latter?s oil fuel storage terminal.
The contract, valid for seven years from Nov. 1, 2015 through Oct. 1, 2022, was signed by Pertamina?s Marketing Director Ahmad Bambang and Adaro?s President Director Garibaldi Thohir.
The contract consists of two components: Fuel Supply Agreement (FSA) and Fuel Facilities Agreement (FFA). Under the FSA, signed with Adaro?s subsidiary PT Adaro Indonesia, Pertamina will supply Adaro with oil fuels amounting to between 400,000-500,000 kl per year throughout the contract?s period to meet the firm?s and its affiliates? needs. Under the FFA, signed with Adaro subsdiary PT Indonesia Bulk Terminal (IBT), Pertamina will be allowed to use the Oil Fuel Terminal owned by IBT in Mekar Putih, Laut Island, Kota Baru regency, South Kalimantan. The terminal has such facilities as a storage tank with a capacity of 60,000 MT, two jetties with a combined capacity of 1.4 million kl/year.
?This is an important milestone in which two big national companies, a state owned firm and a private firm, which are engaged in energy business, are forming a very strategic synergy which will not only provide benefits for each of the companies but also the state, in particular by strengthening oil fuel stock and national energy resilience,? Ahmad said.
Meanwhile, Garibaldi said aside from strengthening the national energy resilience, the contract assures biodiesel supply for the firm from Pertamina, in line with the government?s rule regarding the obligation of using biodiesel in mining operations. This will also improve the company?s local content (TKDN) score, he said.
Editing by Johannes Simbolon