Malaysia, Indonesia To Boost Oil Cooperation
Malaysia and Indonesia announced on October 17th that the two countries will increase cooperation in oil and natural gas production following a visit to Kuala Lumpur by Indonesian President Abdurrahman Wahid.
Malaysian Prime Minister Mahathir Mohamad said that: “We also agreed to continue with our cooperation in the field of oil and gas exploration and production and also in refining of oil in our two countries.
” Wahid met with Mohamad, Indonesian Energy Minister Purnomo Yusgiantoro and Hassan Marican, head of Malaysia’s state oil firm Petronas. Indonesian state oil firm Pertamina and Petronas signed their first deals for oil refining and gas sales in early October.
Petronas is to process 20,000 b/d of crude for Pertamina and will buy gas from Indonesia’s West Natuna Sea area for the next 20 years under the new deals.
Pertamina said on October 17th that it is in discussions with the Indonesian government regarding giving contractors working in marginal fields in the country a greater share of the oil they pump in an attempt to boost the country’s crude production levels.
Pertamina expects that increasing output from marginal fields will amount to an additional 70,000 b/d day in the next two years.