Indonesia: Saudi Aramco wants to enter gas pump market
Saudi Arabian Oil Company or Saudi Aramco has expressed its interest to distribute fuel in Indonesia, reported the Jakarta Post.
The world’s largest crude oil producer requested a permit to enter the downstream oil sector of the Southeast Asian country, according to Indonesia’s Coordinating Economic Minister Darmin Nasution.
The plan, however, was objected by state-owned oil and gas company Pertamina.
Pertamina expressed concerns over competitive pricing and not because it wants to retain its monopoly over the country’s downstream sector, added Darmin.
Pertamina Marketing Director Ahmad Bambang said he was not yet aware about the issue and that Saudi Aramco can easily apply for a permit from the Oil and Gas Directorate General (Dirjen Migas) and the Downstream Oil and Gas Regulatory Agency (BPH Migas) if it wishes to enter the gas distribution business in the country, reported kontan.co.id.
Indonesia is opening up its oil and gas sector to foreign investors to augment its capability to meet domestic demand.
Countries such as Canada, Kuwait, Iraq, Iran, and South Korea have expressed interests to invest but only Saudi Arabia has made an investment commitment.
Saudi Aramco pledged to invest US$10 billion in the development of Indonesian refineries during a business meeting held on September 13 at King Faisal Palace. The meeting, attended by business leaders and Saudi Arabian and Indonesian officials, was part of Indonesian President Joko Widodo’s state visit to Saudi Arabia.
The oil giant also expressed interest in building storage facilities and establishing its own distribution network in Indonesia, reported rambuenergy.com.
