Pertamina, Timor GAP sign cooperation agreement

State owned oil and gas firm PT Pertamina signed on Friday a Memorandum of Understanding (MoU) with Timor Leste?s state owned oil and gas firm Timor Gas E Petroleo, on cooperation to develop oil and gas business in the country that used to be part of Indonesian territory.

The MoU was signed by Pertamina?s President Director Karen Agustiawan and Timor GAP Fancisco da Costa Monteiro.

The MoU covers all aspects of oil and gas business, including upstream and downstream sector development, marketing and human resource development. The cooperation in the upstream and downstream sector is a long-term one.

The cooperation in the downstream sector include the development of gas stations by Pertamina in East Timor and the supply of oil fuels to the country.

After signing the MoU, both parties will set up a working group to further study the cooperation opportunities. They will later establish a cooperation agency which will become a model for Pertamina for business overseas.

?Pertamina is a market leader in Timor Leste, particularly in downstream products such as aviation fuel, LPG and lubricants. We are very willing to strengthen our cooperation with Timor GAP as it will strengthen our position in East Timor,? Karen said.

The cooperation agreement was part of Pertamina?s compliance with Timor Leste?s oil and gas law that stipulates that any oil and gas business entity doing business in the country should have a local partner with a minimum interest of 5 percent.

Editing by Johannes Simbolon