RI, PNG to bolster energy cooperation
Wednesday, May 13 2015 - 02:26 AM WIB
A number of MoUs on cooperation in the oil, gas and power sectors between Indonesia and neighboring Papua New Guinea (PNG) were signed on Tuesday during bilateral talks between visiting Indonesian President Joko Widodo and PNG Prime Minister Peter O?Neill.
The Indonesian Ministry of Energy and Mineral Resources said in a statement that the two countries plan to cooperate in oil and gas exploration in the border areas. No details were provided for this planned project.
Indonesia has also agreed to provide training programs to help develop PNG?s human resources in the energy and mineral sectors, the statement added.
Meanwhile, the PNG government has also promised to ease the permitting process for Indonesia to buy gas as raw material for fertilizer production.
The ministry statement said that Indonesia?s state-owned electricity company PT PLN has signed a deal with PNG Power Limited (PPL), under which PLN would supply about 2 MW of electricity to the latter when a 2x10 MW coal-fired power plant in Jayapura, Papua, starts commercial production. PPL may seek for higher supply in the future.
Meanwhile, Minister of Energy and Mineral Resources Sudirman Said told Petromindo.com Wednesday that Indonesian companies should consider investing in PNG?s oil and gas sector as the country?s offers huge oil and gas potential. ?There are plenty of oil and gas blocks that can be developed there,? he said.
The minister said that Indonesia aims to bolster cooperation with PNG in the oil, gas and energy sectors. He pointed out that Indonesia seeks to import gas from PNG, while the latter wants to import kerosene from Indonesia.
Pertamina spokesperson Wianda Puponegoro told Petromindo.com that the company was ready to export kerosene to PNG as long as the price is right.
Wianda said that Pertamina has already started exporting kerosene since the past two years, with export volume of 800,000 barrels in 2013-2014.
Editing by Reiner Simanjuntak