Petronas, BP to sell fuel in Indonesia

Petronas, BP to sell fuel in Indonesia

Fitri Wulandari, The Jakarta Post, Jakarta

The government may issue a temporary permit for British energy
giant BP Plc and Malaysia's Petronas next month to sell fuel
products in this country.

Erie Soedarmo, downstream oil and gas chief at the energy
ministry said the companies would be able to sell the entire
range of fuel products here.

"We expect principal approvals for BP and Petronas to be
issued in July. The products would range from jet fuel to
whatever products they are (planning) to sell," Erie told The
Jakarta Post recently.

Temporary licenses would enable them to talk to lenders and
banks to start business, he added.

The initial approval would be effective for two years before
the government could decide on giving a permanent license to
them.

"When they have shown clear evidence, such as land acquisition
for pump station or storage facility and other financial
requirements, we will give them a permanent license," Erie added.

The downstream oil and gas sector, which include refining,
distribution and retail activities will be opened to all
investors by November 2005 when state oil and gas firm PT
Pertamina ends its monopoly in the sector. The liberalization of
the sector followed the introduction of new oil and gas law in
2001.

Previously, the government has issued temporary licenses for
seven fuel product retail companies and nine natural gas
distribution companies.