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JAKARTA (TheInsiderStories) – Indonesia’s government decided to freeze the state-owned energy producer PT Pertamina’s deal to operate the Mansouri oil field in Iran over because it wanted to preserve the country’s relationship with the United States, Reuters reported on Wednesday (17/06).

Pertamina’s Acting Chief Executive Nicke Widyawati said on Tuesday (26/06), that the decision came after consultations between Indonesia’s presidency, the Energy and Mineral Resources Ministry and the company. She would not say whether the Mansouri project was likely to be revived in the future.

Previously, the largest oil and gas producer in Indonesia, expects to complete its planned acquisition of an operating interest in Iran’s Mansouri oilfield in April of 2018. The block is expected to produce about 300,000 bpd.

The company will have a 30 percent interest in the field, with another 20 percent to be held by an Iranian partner, and the remainder to be allocated for other potential partners, according to the director Syamsul Alam.

Pertamina had officially submitted a proposal on two Iranian development fields Ab-Teymour and Mansouri oilfield to the National Iranian Oil Company earlier this year. Both fields have been expected to contain reserves of more than five million barrels.

Indonesia, a former Organization of the Petroleum Exporting Countries member, is becoming a growing energy trading partner with the U.S, with a 20-year liquefied natural gas supply deal with the country’s exporter Cheniere Energy that begins this year.

She added, some portion of early deliveries from that deal would likely be resold by Pertamina’s trading operation, since Indonesia’s own gas production will likely meet domestic demand until at least 2020.

However, Widyawati said, Indonesian gas demand would rise sharply in the coming years due to new petrochemicals facilities and a gas-fired power plant coming on line.

As acknowledged, United States President Donald Trump has terminated the participation in the Joint Comprehensive Plan of Action (JCPOA) with Iran and re-imposing sanctions lifted under the deal threatens global community.

This leaves the country with no agreement, and leaves the rest of the world like the United Kingdom, France, Germany, Russia, and China all signed onto the deal. The decision have a significant impact on Iranian domestic policy cause the country has influence in all the conflict regions in the Middle East, and it could be a beginning of a nuclear arms race again in the region.

Trump said, U.S withdrawal from the JCPOA will pressure the Iranian regime to alter its course of malign activities and ensure that Iranian bad acts are no longer rewarded.  As a result, both Iran and its regional proxies will be put on notice. As importantly, this step will help ensure global funds stop flowing towards illicit terrorist and nuclear activities.

The U.S. State Department on Tuesday said it was pushing allies to cut their crude imports from Iran to zero as part of renewed sanctions it is imposing after President Donald Trump abandoned a deal reached in late 2015 that limited Tehran’s nuclear ambitions.

Responded to Trump decision, Iranian Minister of Petroleum Bijan Zangeneh says he is responsible for politicization of the oil market in the world because of his actions. “Market has been politicized by President Trump. I don’t support the high price because I believe that the high prices are supported by President Trump and support shale oil production,” he said in a statement on June 23.

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