Petronas cleared to enter retail market
Wednesday, June 30 2004 - 01:30 AM WIB
"We issued a licence in principle to Petronas last week. Petronas will sell high octane gasoline in Indonesia, such as ron 92, ron 95 and ron 97," Erie Soedarmo, director of processing at the ministry, told Reuters.
"We are still processing the BP licence for selling oil products in Indonesia. We expect to issue it next month."
In February, Indonesia gave licences to Royal Dutch/Shell Group and five other operators, paving the way for private firms to import directly in future.
Soedarmo said there were still many companies interested in getting involved in oil product retailing. He gave no details.
"We have given in-principle approval to allow companies who have the licence to prepare their operations. If they spend money to invest in land, offices and other equipment then the government will issue a licence for them for at least 20 years," he said.
The licences were awarded following a 2001 oil and gas law, in which Jakarta pledged to open up the retail sector to foreign and local private operators.
BPH Migas, the government's downstream regulator, is preparing to take over responsibility for oil product distribution in Indonesia from state oil and gas firm Pertamina in 2005.
Soedarmo said firms that sought to open oil pump stations in Indonesia would have to cooperate with local companies.
Indonesia will consume 60 million kilolitres (377 million barrels) of oil products in 2004, up from 57.4 million kilolitres (361 million barrels) in 2003, the government has said.
But an official at Pertamina said domestic oil products consumption this year was expected to be higher because of growing demand.(*)