Iran supplies LPG to Indonesia

Surabaya, E Java (ANTARA News) - Iran is now a supplier of liquefied petroleum gas (LPG) to Indonesia as Pertamina Gas 2, a very large gas carrier, arrived at the Kalbut port in Situbondo, East Java.

In a press statement, Pertamina Marketing Operation Region V East Java stated here on Friday that the LPG carrying ship was welcomed on arrival by state-owned energy company PT Pertaminas president director, Dwi Soetjipto.

"Thanks to the hard work and cooperation from all parties, internally as well as externally, in administration, financing and operational aspects, the LPG carrying Pertamina Gas 2 vessel has arrived safely in Kalbut, Situbondo," he said.

Dwi added that the maiden arrival of the ship marked a new stage in the cooperation between PT Pertamina and National Iranian Oil Company (NIOC), as it opened the door for more significant trade between Indonesia and Iran.

He stated that the arrival also marked the opening of an opportunity for development of other businesses between Pertamina and NIOC in the upstream as well as downstream sectors.

"This success is inseparable from the support that the government extended, beginning with the signing of a G-to-G memorandum of understanding between Indonesia and Iran on February 24, 2016. It was signed by the Indonesian director general of oil gas. This was followed by the visit of the Minister of Energy and Mineral Resources to Iran that coincided with the signing of the Head of Agreement between Pertamina and NIOC on May 30, 2016," he acknowledged.

Under the HOA, a trade deal was inked by Pertamina and NIOC for 2016 and 2017 for the purchase of 600,000 metric tons of LPG through commercial direct transactions.

The cooperation will benefit both parties, especially Pertamina that has always set a supply target at a competitive price.

Apart from this LPG purchase, Pertamina and NIOC have also signed a memorandum of understanding on a preliminary study of two huge oil fields in Iran, namely Ab-Teymour and Mansouri (Bangestan-Asmari), that have reserves of more than 5 billion barrels in August 2016.

Earlier, Pertamina representatives visited Iran several times to study commercial, operational and legal compliance aspects.

Dwi noted that Pertamina has also confirmed that this cooperation would be in line with the regulations and will proceed following due diligence of all parties involved in the cooperation process.

The LPG cargo that arrived in Situbondo on Friday totaled 44,000 metric tons and was carried from Irans port of Asaluyeh.

After the arrival of the maiden shipment, the next cargo from NIOC is scheduled to arrive at the end of the third week of November, around November 20, 2016.(*)