PT Pertamina (Persero) and Timor Gas E Petroleo, National Oil Company of Democratic Republic of Timor Leste, signed the Memorandum of Understanding for developing business together in oil and gas sector in Timor Leste.
The Memorandum of Understanding (MoU) was signed by President Director of Pertamina Karen Agustiawan and President & CEO Timor Gas E Petroleo Francisco da Costa Monteiro in Jakarta Friday.
The scope of partnership will enclose all oil and gas sector, from upstream, gas, processing, marketing and the development of human capital. The partnership is planned for long term commitment for upstream and processing sector.
Meanwhile for marketing sector, the preparation of partnership planning will be completed in near future. Some matters to be handled immediately in the partnership include construction of fuel stations, supply of fuels to Timor Leste, and other partnership opportunities in downstream sector.
After the MoU signing, the next step is to conduct joint-study by Pertamina and Timor Gas E Petroleo by forming a working group that will be working on planning the business partnership.
Pertamina and Timor GAP will immediately form a business partnership body that will be role model for Pertamina’s overseas business venture.
“Pertamina currently is the market leader in Timor Leste, particularly for downstream business like BBM retail and industry, avtur, LPG, and lubricants. Hence, we really want to further tighten the cooperation between Pertamina and Timor GAP, which will strengthen our existence in Timor Leste, “ President Director of Pertamina Karen Agustiawan said.
“Pertamina’s business in Timor Leste will be used as role model for Pertamina’s overseas business venture.”
Pertamina’s effort to partner with Timor GAP in oil and gas business in Timor Leste is part of the company’s compliance to local regulation, whereby the Government has stipulated the Downstream Democratic Republic of Timor Leste (RDTL) Decree Law No. 1/2012 on 1 February 2012.
The Article 9 of the Law stipulates that the businesses that conduct business in oil and gas sector must be companies that are established based on RDTL law. Besides, the regulation stipulate the obligation for participating interest of at least 5% by local company.
Source: Pertamina, June 18, 2012