Indonesia to Start Importing Crude Oil From Angola Next Year

Fuel trucks queue to leave a Pertamina's filling center in Jakarta on Aug. 27, 2014. (AFP Photo/Adek Berry)

By : ID/Retno Ayunningtyas | on 12:50 PM November 04, 2014
Category : Business, Commodities, Featured

Fuel trucks queue to leave a Pertamina's filling center in Jakarta on Aug. 27, 2014. (AFP Photo/Adek Berry) Fuel trucks queue to leave a Pertamina's filling center in Jakarta on Aug. 27, 2014. (AFP Photo/Adek Berry)

Jakarta. Indonesia will start importing crude oil from Angola next year, Energy and Mineral Resources Minister Sudirman Said said on Monday.

After a meeting with top officials from Sonangol, the state-run oil and gas company from the southern African country, the minister stressed the importance of having access to alternative sources for crude oil supplies.

"We've been trying to look for oil wells and conduct direct deals to import oil," Sudirman said. "Sonangol came up as one of the alternatives."

Indonesia and Angola signed a cooperation agreement for the oil and gas sector during the visit of Angola's Vice President Manuel Vicente to Jakarta on Friday, when he met with President Joko Widodo.

The agreement also involves Indonesia's state-owned oil and gas company Pertamina.

Acting president director of Pertamina Muhamad Husen said the two companies will form a joint team to manage upstream operations, processing and trade.

Husen did not disclose the volume of crude oil to be imported from Angola, as this number is still being discussed.

"But we expect the first shipment next year," he said, adding that the cooperation will also include the construction of oil refineries in Indonesia to process the Angolese oil.

Based on data from the Organization of the Petroleum Exporting Countries (OPEC), Angola produced 1.7 million barrels per day in 2013, while the country only used some 128,000 barrels per day. The country also has oil reserves of 9 billion barrels.

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