Shell, Petronas, AKR awarded contracts to sell subsidized fuel outside Java

Three private fuel distributors including IDX-listed firm PT Aneka Kimia Raya (AKR) Corporindo, Shell Indonesia and Petronas have won the tender to sell subsidized fuels in Sumatra and Kalimantan, beginning next year.

AKR won the rights to sell 109,160 kiloliters of subsidized diesel a year in North Sumatra?s cities of Medan and Deli Serdang, and several areas in Lampung including Metro, Central Lampung, East Lampung, South Lampung, North Lampung and Bandar Lampung, as well as in Pontianak and Banjarmasin in Kalimantan.

Shell was awarded the rights to sell about 5,110 kiloliters of subsidized Premium fuel a year in Medan, while Petronas will sell 20,440 kiloliters of subsidized Premium fuel a year in Medan.

Tubagus Haryono, the head of BPH Migas, the regulatory for downstream oil and gas operations, said in Jakarta on Thursday that Shell and Petronas were awarded the rights to sell subsidized fuels only in Medan because the two companies only proposed to sell the subsidized fuel in the city in the tender.

He said that AKR was given a larger distribution area because the company had an experience in distributing the fuel to industrial buyers such as mining and plantation companies.

Tubagus said that the three companies should submit a written statement about their preparation in the distribution of the subsidized fuel on Oct. 27 at the latest before BPH Mugas gave them a final approval to sell the fuel.

?If they are not ready, their distribution rights will be revoked,? he added. (kanti)