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)