Asia: Pertamina, Petronas Join Forces

March 3, 2019

Indonesian state-owned energy company PT Pertamina and Petroliam Nasional Berhad (Petronas) of Malaysia have signed a Memorandum of Understanding (MoU) to develop oil and gas business – upstream and downstream, not only in Indonesia or Malaysia but also in other countries.

As per MoU, Pertamina will swap crude produced in its Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Petronas' Indonesian fields of Jabung and Ketapang, said a Reuters report quoting Pertamina sources.

Meanwhile, Pertamina,  Jakarta-based state-owned oil and natural gas corporation, said in a statement that the two companies have also agreed to explore crude processing investment in East Asia and in other continents, as well as to conduct joint researches, especially on technology to develop blocks with high carbon dioxide content.

A  report in Tempo also quoted Pertamina’s investment planning and risk management director Heru Setiawan saying that the synergy between two state-run energy companies will enable both Pertamina and Petronas to explore business opportunities outside of the two regions.

This deal includes cooperation in the field of research and development, oil and gas exploration studies that include applying technologies in high-Co2 level oil fields, trading oil and gas products, renewable energy and many more, it said.

Separately, Dharmawan Samsu, Pertamina's upstream director, said the company is also looking at increasing its stakes in Malaysia's oil and gas fields.

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