JAKARTA (TheInsiderStories) - State owned energy company PT Pertamina delivered a first cargo of liquid petroleum gas (LPG) from Iran through a Very Large Gas Carrier (VLGC) at the Port Kalbut Situbondo, East Java with a volume of 44,000 metric tons (MT) of LPG. The VLGC sailed from Iran Asaluyeh Port for about 13 days.
Based on the head of agreement (HOA) with the National Iranian Oil Company (NIOC), Pertamina and NIOC agreed to deliver a total of 600,000 MT of LPG in the period of 2016 and 2017. After delivering the first cargo, the next cargo of LPG will arrive on Nov. 20, or third week of November.
President Director of Pertamina Dwi Soetjipto said the LPG delivery marks a new chapter of cooperation between Pertamina and the National Iranian Oil Company (NIOC) and will open door for a further trade cooperation between Indonesia and Iran.
In addition to the purchase of LPG, Pertamina and NIOC had in earlier signed a memorandum of understanding to conduct a preliminary study of two giant oil field in Iran, namely the Ab-Teymour and Mansouri (Bangestan - Asmari) which have reserve of more than 5 billion barrels.
Pertamina has visited Iran several times to explore commercial aspects, operation as well as aspects of legal compliance. Pertamina also conducts due diligence on all parties involved in the process of delivering the LPG and other cooperation to ensure the process runs in accordance with the provisions.
Pertamina says it plans to invest in four operating oil and gas blocks in Iran. Dwi expects the supply of crude oil from Iran will be delivered to the private refinery in Situbondo, East Java. Pertamina would be the off-taker of private refinery products.
“We are interest in 4 blocks, two onshore and 2 offshore blocks. All the blocks are already operating,” he said.
The signing of the Liquefied Petroleum Gas (LPG) contract with Tehran is a turning point and the first step towards enhancing cooperation between Iran and Indonesia.
Indonesia imports half of its cured oil needs and it is ready to buy 150,000-200,000 barrels of oil per day of crude oil from Iran. While, Iran is currently preparing the Iranian Petroleum Contract that would mark a new chapter in the country’s oil and gas industry. (*)