South Africa's PetroSA set to drill in Indonesia

South African state-owned firm PetroSA could be drilling in Indonesia?s oil fields if mineral and energy agreements between the two countries went ahead, Deputy President Phumzile Mlambo-Ngcuka said as quoted by Business Day.

"One of the agreements that has been considered most probably will be signed next year (and) is in the area of minerals and energy," she said during a press conference with Indonesian Vice President Jusuf Kalla, who is on an official visit to the country.

PetroSA was talking to its counterparts in Indonesia about cooperation including opportunities for exploration and production in Indonesia, she said.

During the Asia-Africa summit held in Jakarta in April this year, the idea was proposed for the direct trade of oil between certain Asian oil producing countries and African states.

Kalla?s visit comes as Indonesian students on Wednesday staged protest against a proposed fuel hike in the country.

Kalla, who was welcomed with pomp and ceremony at Parliament earlier, arrived in SA this week with a large delegation that included over 100 businessmen.

He said the main purpose of the visit was to tighten relationships and to develop business, trade, education and tourism ties.

Five memorandums of understanding have been signed between the two countries this year but it was pointed out that these meant nothing if the documents were not put into practice.

"No country in Asia or Africa has the length of relationship that Indonesia and SA do," he said.

The leaders also undertook to share their reconciliation experiences with each other to promote peace in their respective regions.

Mlambo-Ngcuka said they had similar concerns around issues of nation building and social cohesion. She said SA experiences gained from the Truth and Reconciliation hearings would be shared with Indonesia which was currently embarking on a similar path with East Timor.(*)