Pertamina, Sonangol sign pact

State owned oil and gas firm PT Pertamina signed on Friday a Framework Agreement with Angolan state owned oil and gas firm Senangol EP to cooperate in the oil and gas upstream and downstream sector.

The agreement was signed Pertamina?s acting President Director Muhammad Husen and Senangol EP?s Chairman of Board of Directors Francisco de Lemos Jose Maria in the presence of Vice President Jusuf Kalla and Angolan Vice President Manuel Domingos Vincente, Pertamina said in a press statement.

The Framework Agreement is a result of the G-to-G cooperation between both countries and will become a basis for both firms to cooperate in developing upstream business, refinery and petrochemical plants as well as in exporting and importing oil products, gas and crude.

Within seven days, Pertamina and Senangol EP will set up a task force assigned to set up a joint venture that will handle the business. The joint venture will subsequently prepare all details of the projects that both firms will develop.

?The cooperation comes a result of a good rapport between the Republic of Indonesia and Angola. Pertamina is ready to realize the cooperation, which is a milestone for the company in its efforts to develop its main business in the oil and gas sector.

?We and our partner will jointly explore various potential projects, either those in the oil and gas upstream sector in Angola, Indonesia and elsewhere, or refinery projects in Indonesia which the country direly needs to ensure national energy resilience,? Husen said.

He noted that Indonesia?s oil fuel consumption grows by 8 percent a year, while the national oil production is declining and the capacity of domestic refineries has not increased. Pertamina is committed to supporting the government in ensuring the national energy reselience through efforts to raise production in the upstream sector either in Indonesia or abroad, boost refineries? capacity, convert energy use and diversify energy sources.

?We are optimistic that within five and six years, Indonesia will achieve an energy self-sufficiency. Pertamina is ready to become a backbone in pursuing the goal,? Husen said.

Angola, a non OPEC member, produced 1.8 million barrels of oil and condensate per day in 2013. The country?s oil production records an average growth of 15 percent per year on the supports of deepwater fields.

Editing by Johannes Simbolon