Pertamina to go to Uzbekistan<\/p>\n
JAKARTA (JP): The state-owned oil company Pertamina is to
\nexpand its oil exploration activities to Uzbekistan, a former
\nSoviet Union republic rich in oil and gas reserves, a company
\ndirector said.<\/p>\n
\"We're sounding out the possibility of oil exploration there.
\nAnd the Uzbekistan government has given us a green light,\"
\nPertamina's director of general affairs, Baharuddin, told the
\npress yesterday.<\/p>\n
Speaking at an orientation gathering with reporters, he said
\nthat his company is likely to sign a memorandum of understanding
\nwith the country in the near future.<\/p>\n
\"We're also seeking partners to finance the planned oil
\nexploration as we cannot do it on our own,\" he said.<\/p>\n
According to Baharuddin, if the project is realized, it will
\nbe the company's first oil exploration project abroad.<\/p>\n
He said foreign oil exploration is part of the company's
\nstrategy to expand its oil and gas businesses in the future.<\/p>\n
He noted that his company will also continue to minimize costs
\nof production to win competition on the world market. \"Now the
\ntrend in the energy businesses is not how much you can sell your
\nproducts for to get as big margins as possible but how you can
\ncut your costs.<\/p>\n
Changes<\/p>\n
\"We also have to monitor changes in domestic and international
\nmarkets quickly so that we can devise our own strategy to
\ncompete,\" he said.<\/p>\n
\"For the time being we're dealing with a problem posed by
\nOman, which is offering its natural gas without a floor price
\nrequirement,\" he said, adding that \"It could become a serious
\nproblem for us in selling our natural gas.\"<\/p>\n
Currently, Pertamina sells its liquefied natural gas (LNG) for
\nUS$3.5 per million British Thermal Units (BTU) with a floor price
\nof $1.93 per million BTU.<\/p>\n
Oman, he said, has already secured a contract to sell four
\nmillion cubic feet of gas to South Korea and is now offering its
\nnatural gas to Thailand under a no-floor price arrangement.<\/p>\n
Thailand had previously planned to buy gas from Indonesia, who
\nwould pipe it from the Natuna gas field in Riau.<\/p>\n
\"I don't know whether Thailand will choose gas from Oman or
\nIndonesia,\" he said.<\/p>\n
He added that Pertamina is exploring the possibility of
\nexporting its natural gas by pipeline to other members of the
\nAssociation of Southeast Asian Nations.<\/p>\n
Besides Indonesia, the association comprises Brunei, Malaysia,
\nthe Philippines, Singapore, Thailand and Vietnam.<\/p>\n
Baharuddin also said that the state firm is offering swap and
\nbackhaul-trip delivery systems to other oil and gas-producing
\ncountries.<\/p>\n
\"Under a swap system, if we get a contract to sell gas to
\nIndia, for example, we will ask a nearby producing country like
\nIran to supply the gas for us under a profit sharing scheme. But
\nif Iran gets such a contract from Japan, Indonesia will supply
\nthe gas to Japan,\" he said.<\/p>\n
On the backhaul-trip delivery system, he cited Saudi Arabia as
\nan example. All Saudi tankers transporting LNG to South Korea and
\nJapan usually return home vacant. \"We can charter the ships to
\ntransport our LNG product to our customers in Sri Lanka, for
\nexample, on their way home. This will improve efficiency,\" he
\nsaid. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-go-to-uzbekistan-1447893297",
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