Tenggara, Elnusa sign MoU

Malaysian firm Tenggara Oil Bhd on Friday signed a memorandum of understanding (MOU) with PT Elnusa, a 51.38 per cent-owned subsidiary of Indonesia?s state-owned oil and gas company, Pertamina.

"The MOU forms the basis for mutual cooperation between the two companies in working on oil and gas services, both upstream and downstream," said Tenggara Oil in a statement to Kuala Lumpur Stock Exchange.

Under the MOU, Elnusa will provide its expertise in upstream services, liaise with governmental and industrial bodies and its channels of distribution in Indonesia; while Tenggara will provide its competence in acquiring the oil and gas fields, exploration, production and financing as well as supplying lubricants to the Indonesian market.

Cooperation in upstream services will include exploration, production and maintenance of oil and gas fields, while for the downstream services, it will cover marketing of lubricants made in Malaysia and the distribution of other oil-related products.

According to Tenggara Oili, the MOU is effective for six months from the date of its execution.

Newly-appointed president of Tenggara Mustaffa Abdul Latiff said both parties are currently evaluating their first project, but declined to give details.

?There are many projects in the pipeline. The first project is more towards the upstream. It can be from exploration to production, in Indonesia and outside Indonesia. We are still evaluating,? he told Business Times.(robert)