Malaysia suggests joint oil stockpile for energy security

Malaysia suggests joint oil stockpile for energy security

Moch. N. Kurniawan and Novan Iman Santosa, The Jakarta Post,
Nusa Dua, Bali

Malaysia has proposed the establishment of a joint oil
stockpile among ASEAN countries to help ensure energy security in
the region.

Malaysian Minister of Energy, Communication and Multimedia
Datuk Amar Leo Moggie said here on Sunday that he had invited
Indonesia to work together in initiating a feasibility study
toward the creation of a joint crude oil stockpile.

"We have not yet made the detailed mechanism. We are just
floating the idea to member countries," Amar told reporters on
the sidelines of the two-day Indonesian International Oil, Gas
and Energy (IIOGE) conference.

"The center is important to make sure that we have some
element of comfort (on oil supply)."

Malaysia will become a net oil importer by 2008 while
Indonesia has a longer lifespan, Amar said.

"But still we will become net oil importers soon."

Amar also said that he could not determine the size of the
initial stockpile as it had to be analyzed first.

"I do not know the minimum requirement yet but the most
important is to make the idea acceptable," he said.

Separately, Director General for Oil and Gas Rachmat Sudibyo
said it was a good idea, but it needed a further discussion among
other ASEAN countries.

"We (Indonesia) will carefully discuss it as ... we don't want
the idea to create further burden for us," he told The Jakarta
Post.

Both Malaysia and Indonesia are major oil producers in the
region.

Indonesia produces about 1.2 million barrels of oil per day.

Amar also said his country was willing to host the ASEAN
Council on Petroleum (ASCOPE) Gas Center, which will become the
ASEAN gas center.

"Generally, the center will focus on formulating strategies
and facilitating ASEAN gas development," he said.

In the short term, the gas center would nurture technical and
commercial capability in the gas industry among ASCOPE members,
he said.

It would also function as the focal point for a natural gas
technology program and to provide updates and information sharing
within the natural gas industry, Datuk went on.

In the long term, the center would enhance and promote ASEAN's
technology capability advancement in the gas industry through
effective gas-related techno-economic, research and development,
education, skilled training and development, he said.

Malaysian state oil company Petronas has already set up a gas
center in its research and development facilities in Bangi.

"We are offering this center to be ASEAN's center on all gas-
related aspects both upstream and downstream.

"Both Malaysia and Indonesia have offered to host the center
but it will be up to ASCOPE to decide," he said.

The 20th ASEAN Ministers of Energy Meeting (AMEM) has
recommended ASCOPE set up an ASCOPE Gas Center that can develop
into an independent ASEAN Gas Center.

The ASEAN ministers have also signed a memorandum of
understanding to further develop a cross-border regulatory
mechanism on the Trans ASEAN gas pipeline.