RI-Croatioa oil deal agreed
RI-Croatioa oil deal agreed
ZAGREB (JP): President Soeharto and Croatian Prime Minister
Nikica Valentic witnessed the signing of a letter of
understanding here Sunday evening between Indonesia's state oil
company Pertamina and its Croatian counterpart on several
business cooperation projects.
The letter was signed by Pertamina's president Faisal Abda'oe
and the general manager of INA Oil Industry Ltd., Franjo
Greguric, in a ceremony that was also attended by Indonesia's
Foreign Minister Ali Alatas, Minister/State Secretary Moerdiono
and Chief of the Armed Forces General Feisal Tanjung.
Abda'oe told reporters that the two companies have
opportunities to cooperate in three areas: oil and gas
exploration, the sale of liquefied natural gas (LNG) and the sale
of oil industry services and materials.
"We are offering a number of potential areas in Indonesia to
INA for the exploration and production of oil and gas under
production-sharing contracts or technical assistance
arrangements," he said.
Zuhdi Pane, the head of Pertamina's bureau for the development
of foreign contractors, said that Pertamina is now offering about
70 areas for oil and gas exploration and it will help ease
procedures for INA to participate in those concession areas.
He said Pertamina is also offering the sales of LNG to INA,
which, in cooperation with other European companies, will
establish an LNG receiving terminal on the island of Krk in
Southern Croatia.
A spokesman for INA said that the first phase of the terminal
will be completed in 2000, when an annual supply of 4.5 billion
cubic meters of natural gas will be needed, while the second
phase will be completed between 2003 and 2005 with an additional
gas supply of 2.2 billion cubic meters.
Pane said Pertamina will provide LNG for INA from its plant in
Bontang, East Kalimantan, or from an LNG project which will be
set up in Natuna of Riau.
Pertamina plans to construct a new LNG plant in Natuna if it
finds major buyers. The plant will be supported by huge reserves
of gas containing a high degree of carbon dioxide.
Abda'oe said that Pertamina is also inviting INA to provide
services and materials for oil drilling in Indonesia in
cooperation with local partners.
After witnessing the signing of the agreement, President and
First Lady Mrs. Soeharto held a meeting with Croatian
parliamentary leaders at the parliament building and attended a
dinner hosted by the Croatian prime minister at the Verce Palace.
(riz)