Pertamina, Petronas sign deal

JAKARTA (JP): Malaysian state oil company Petronas and Indonesian state oil company Pertamina signed on Wednesday a one- year term contract for the supply of Malaysian Crude Oil (MCO) to Indonesia effective Jan. 1, 1999.

Petronas said in a statement that the signing of the contract represented a significant milestone in the relationship between the two companies.

The deal, the first direct business arrangement to have been concluded between the two state oil companies, is expected to serve as a catalyst in opening up more opportunities for mutually beneficial cooperation in future, the Malaysian company said.

The contract covers the supply of about 20,000 barrels per day of MCO on delivered basis with Pertamina having the option to receive additional volume of 600,000 barrels of MCO per month.

Prior to the term contract, Pertamina has bought a total of 7.6 million barrels of spot cargoes from Petronas since July this year.