KL mulls coal purchases, gas and oil collaboration
KL mulls coal purchases, gas and oil collaboration
KUALA LUMPUR (AFP): Prime Minister Mahathir Mohamad on Monday expressed Malaysia's desire to work with Indonesia on oil and gas exploration and to buy more coal to reduce the country's dependence on gas.
"We have invested in plantations. But we are willing to collaborate in other areas, like (Malaysia's state energy company) Petronas to work with (Indonesian counterpart) Pertamina in oil and gas concession areas.
"We will look at Indonesia as another good place to invest in collaboration with Indonesia," Malaysian Foreign Minister Syed Hamid Albar told a press conference.
Earlier Mahathir and visiting Indonesia's President Megawati Soekarnoputri held an hour-long meeting.
Megawati mentioned that if they have to work together and if they have to raise funds, it will be a viable type of project where they will raise funds with the international financial institutions, Syed Hamid said.
"She did not come for aid," he added.
"Malaysian investors are still keen to invest in Indonesia," the foreign minister quoted Mahathir as telling the Indonesian president.
Syed Hamid also said that Mahathir told Megawati that Malaysia was keen to buy coal from Indonesia as part of its strategy to reduce its dependency on gas.
Mahathir told Megawati that Kuala Lumpur was "very happy" with her assurance that the political situation was stable and back to normal, he said.
Malaysia utilities giant Tenaga Nasional Bhd has said its plan to acquire a coal mine in Indonesia's Kalimantan on Borneo island is to protect against a sudden rise in coal prices.
Tenaga Chairman Jamaludin Jarjis, quoted by Bernama news agency Sunday, said that under the firm's new policy of diversifying into coal, it would be irresponsible not to ensure a steady supply of the fuel.
Tenaga has proposed to buy the Indonesian coal mine, owned by Dynamic Acres Sdn Bhd, for US$59.5 million.
Tenaga currently depends on gas for its power generation. However, it faces higher gas costs as Malaysian national oil company Petroliam Nasional Bhd (Petronas) has requested a price increase.