Indonesian Pertamina will continue to bid for US energy imports

Pertamina, the Indonesian state oil and gas company, said on Friday that imports of energy products from the U.S. will still be done 'through a competitive bidding process' following the conclusion of the trade agreement between the two nations.

On Thursday, Indonesia and the U.S. signed a deal that reduced U.S. tariffs from 32% to 19%. Indonesia plans to import goods and services worth $38,4 billion from the U.S. This includes $15 billion in energy commodities.

Crude oil, LPG and fuel products will be included in the planned energy imports.

Pertamina CEO Simon Aloysious Mantiri told reporters that "regarding plans to import energy from the U.S. we are conducting our business as usual, through tenders and bidding, there is no direct appointment."

Mantiri stated that after the trade agreement, the imports of 'liquefied petroleum gases from the U.S. could rise from 57% to 70% of Pertamina’s annual imports.

Pertamina has signed memoranda of understandings with Exxon Mobil Corp., Chevron and KDT Global Resources.

The Southeast Asian nation has stated that it intends to shift its energy imports from Singaporean, Middle Eastern and African sources in order to increase purchases of the United States.

Indonesian Energy Minister?Bahlil lahadalia said that Exxon Mobil’s?contract for operating the Cepu oil blocks in East Java would also be extended until 2055 as a result of the trade deal. He added that the extension will?boost investments by around $10 billion.

He said, "However there are a few matters we need to clarify. These include cost recovery and sharing." This will be done soon." Reporting by Bernadette Cristina, Ananda Teressia, Fransiska Nanangoy, and Editing by Tomasz Janowski, Jan Harvey

(source: Reuters)