Malaysia, RI agree on oil, gas deal

Malaysia, RI agree on oil, gas deal

LANGKAWI, Malaysia (Reuters): Malaysia and Indonesia agreed on
Tuesday to step up cooperation in oil and gas production
following this month's landmark agreement between the two
neighboring oil producers.

Malaysian Prime Minister Mahathir Mohamad said after talks
with visiting Indonesian President Abdurrahman Wahid that both
countries would also cooperate in refining their crude oil.

"We also agreed to continue with our cooperation in the field
of oil and gas exploration and production and also in refining of
oil in our two countries," he told a news conference in the
northern Malaysian island of Langkawi.

Mahathir gave no details on the possible new tie-ups.
Indonesia is Asia's only OPEC member while Malaysia is a major
non-OPEC oil producer.

Wahid is in Langkawi for a two-day visit before heading for
South Korea on Wednesday for an Asia-Europe meeting.

Indonesia's Energy and Mines Minister Purnomo Yusgiantoro and
head of Malaysia's state oil firm Petronas, Hassan Marican,
attended the Langkawi talks.

Petronas and Indonesian state oil company Pertamina earlier
this month their first oil refining and gas sale deals.

Under one deal, Petronas will process 20,000 barrels per day
of sour crude for Pertamina. Petronas will also buy natural gas
for 20 years from Indonesia's West Natuna Sea area from
Pertamina.