Indonesia's Pertamina To Sign First Upstream Deal With Iran

Reuters

JAKARTA, June 27 (Reuters) - Indonesia's state energy company Pertamina will sign a deal to purchase a stake in an oil and gas block in Iran within a week, an official at Indonesia's energy ministry said on Monday.

Iran's oil and gas infrastructure has stagnated after years of international sanctions that were lifted in January and is now in need of investment.

A deal would be Indonesia's first investment in Iran's upstream oil sector. Last month Pertamina inked a deal to purchase 600,000 tonnes of liquefied petroleum gas from state-owned marketer National Iranian Oil Co.

"The government to government agreement is done, so now (we're) following up with a company to company (deal)," Oil and Gas Director General Wiratmaja Puja told reporters, noting that a deal was expected before the end of the Muslim fasting month. The fasting month of Ramadan is expected to end on July 5.

Pertamina did not immediately respond to written requests for comment.

The announcement comes as Iran is about to launch a new investment contract for companies seeking to bankroll upstream projects in its oil and gas sector.

Foreign investors will be invited to bid for the new contracts in July, Iran's Deputy Oil minister Rokneddin Javadi said in May.

Some 135 companies including BP, Total, Italy's Eni and Spain's Repsol attended a conference in Tehran in November to hear about the Iran Petroleum Contract (IPC).

The IPC would end a buy-back system that dates back more than 20 years that bans foreign companies from booking reserves or taking equity stakes in Iranian companies.

(Reporting by Wilda Asmarini; Writing by Fergus Jensen; Editing by Christian Schmollinger)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Aditya Kurniawan | Jun. 27, 2016
Go Pertamina for great investor-international cooperation.


Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Project Management
Location: Houston, TX
 
GIS Intern Job
Expertise: Cartography / Mapping|Landman|Modeling
Location: Eau Claire, WI
 
Chemicals, Sales Account Manager, Oil & Gas - Midland - Odessa TX
Expertise: Business Development|Marketing|Sales
Location: Midland, TX
 
search for more jobs

Brent Crude Oil : $53/BBL 1.72%
Light Crude Oil : $49.77/BBL 2.27%
Natural Gas : $3.6/MMBtu 1.09%
Updated in last 24 hours