Pertamina, Timah sign new fuel supply deal
Monday, February 10 2014 - 04:51 AM WIB
State-owned oil and gas firm PT Pertamina signed on Monday a two-year fuel supply agreement with IDX-listed tin giant PT Timah under a new fuel distribution system called Vendor Held Stock (VHS).
The fuel sales and purchase agreement was signed by Pertamina Vice President for Industrial Fuel Marketing, Gandhi Sriwidodo, and Marketing Director of Timah, Dadang Mulyadi.
Previously, Timah picked up by itself its fuel requirement at Pertamina depot. Under the new VHS system, Pertamina will assign its subsidiary PT Patra Niaga to manage and deliver the fuel requirement of Timah to locations determined by the latter firm.
Gandhi said that with the VHS distribution system, consumers will obtain a number of benefits as they could concentrate more on their core businesses, maintenance of equipment, and assurance of continuity in fuel supply.
Under the VHS system, Timah would only need to contact Pertamina for its fuel requirement in accordance with the locations determined by Timah. Responsibility in the supply and distribution of the fuel products will be fully held by Pertamina.
Under the new fuel supply contract, Pertamina will supply Timah with 2,500 kilo liters of diesel fuel and fuel oil per month.
The VHS system has been running at a number of Pertamina depots including Belinyu depot since July 2008, Muntok depot since August 2009, and Kundur depot since October 2009.
Editing by Reiner Simanjuntak