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LPG Deal With Indonesia Possible During Presidential Visit

Pertamina's LPG imports may total 528,000 tons next year.
Pertamina's LPG imports may total 528,000 tons next year.

State energy company Pertamina may sign a deal to import Iranian liquefied petroleum gas (LPG) in 2017 when Indonesia's president visits the country this week, company officials said on Tuesday. The LPG imports may total up to 528,000 tons during next year, Reuters quoted the officials as saying.

"It is highly likely we will import again from the National Iranian Oil Company," Pertamina spokeswoman Wianda Pusponegoro told reporters, adding that Pertamina planned to import up to 12 cargoes, each of which contains 44,000 tons of gas, in 2017.

A deal could be signed this week during Indonesian President Joko Widodo's trip to Iran, she said. The planned purchases are part of 600,000 tons of LPG that Pertamina tentatively agreed to purchase in May from the state-owned NIOC this year and in 2017.

Pertamina is also considering buying stakes in two oil and gas blocks in Iran and had met and discussed the matter with Iran's oil minister during the recent Organization of the Petroleum Exporting Countries meeting in Vienna, Pusponegoro said.

"We hope they can agree on Pertamina's proposal," she said, noting that Iran was still studying the matter and that Pertamina aims to complete a deal at the beginning of 2017.

"Our target is for at least 30,000 barrels of oil equivalent per day," Pusponegoro added.

Separately, Pertamina's deputy chief executive, Ahmad Bambang, told reporters that the company is also hoping to expand its footprint in Algeria.

"In the short term we want to strengthen our position in Algeria with a purchase from Repsol, but this is still being discussed," Bambang said.

Spanish energy company Repsol wants to sell its 35% participating interest in the MLN field, where Pertamina currently holds the remaining 65% stake, he said.

"(Repsol) want to sell everything. We are negotiating."

 

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