Britain to help develop Indonesia's oil sector

JAKARTA (JP): The British government agreed on Thursday to help develop Indonesia's oil and gas sector by encouraging investment and the transfer of know-how from its own industry.

A joint declaration issued by British Minister of Trade Richard Caborn and Indonesia's Minister of Energy and Mineral Resources Purnomo Yusgiantoro on Thursday outlines three measures to promote cooperation in the oil and gas sector.

The two ministers agreed to encourage and facilitate British investment in Indonesian oil and gas projects, according to the declaration, which was signed at the end of Caborn's three-day visit.

They also agreed to facilitate collaboration between Indonesia and British small and medium-scale enterprises in the oil and gas sector and to seek ways to enhance performance in the Indonesian oil and gas sector.

Purnomo announced after the signing ceremony that Indonesia and Britain could establish many joint cooperation programs.

He said British technology and know-how in exploring and exploiting oil and gas from the deep waters of the North Sea was something that Indonesia could learn and adopt.

"British companies are among the world's leaders in the oil and gas industry. We want to invite them here," he said.

"The most important thing from the declaration is that we are promoting foreign direct investment here," he said.

Purnomo said Indonesia could also learn from the way Britain had helped small and medium-scale enterprises participate in the oil and gas industry.

Caborn refrained from stating a specific amount in British investment that would result from the declaration, saying that his government's main concern was to create the necessary conditions to promote the exploration of oil and gas in Indonesia.

But the British Embassy in Jakarta said there was potential for substantial additional British investment in the oil and gas sector in Indonesia.

"This is likely to materialize once new legislation is passed, clarifying the future operating environment investment," it said.

Earlier, Caborn and Purnomo jointly opened the inaugural meeting of the Indonesian British Oil and Gas Working Group at Kempinski Hotel.

Representatives from Indonesia included government officials as well as state companies Pertamina (oil and gas) and Perusahaan Gas Negara gas distributor, and private companies like Medco and Kondur Petroleum. Representatives from Britain included executives from oil companies such as Beyond Petroleum, Shell and Premier Oil and supply service companies such as Amec and Foster Wheeler. (02)