UAE Commits to Supplying Indonesia with Up to 30 Million Barrels of Crude Oil

en.Wedoany.com Reported - On October 27, Joko Siswanto, head of Indonesia's upstream oil and gas regulator SKK Migas, announced in Jakarta that the UAE has committed to supplying Indonesia with up to 30 million barrels of crude oil. The two sides discussed the supply arrangement during a meeting between Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia and the UAE Ambassador to Indonesia, and Indonesia may draw on the committed supply at any time according to its needs.

Speaking at the event held the same day marking the completion of preliminary engineering design for the Abadi LNG project in the Masela Block, Joko explained that the supply arrangement proposed by the UAE Ambassador involves crude oil transportation and capital occupation conditions, including that Indonesia will not need to bear upfront working capital or vessel transportation costs. The specific commercial arrangements and the scope of applicable costs remain subject to the implementation mechanism to be determined by both sides.

On October 26, the Indonesian government issued Presidential Regulation No. 107, adjusting the import procurement mechanism for crude oil, refined products and LPG, incorporating direct government-to-government cooperation and direct government-to-enterprise cooperation into procurement channels. Under the new mechanism, the government is responsible for negotiating procurement arrangements with supplier countries, and designated public service agencies are responsible for executing procurement and supplying Pertamina, Indonesia's state oil company.

Indonesia's Ministry of Energy and Mineral Resources has also arranged to seek long-term oil product supplies from other sources. Bahlil plans to travel to India and China to conduct supply negotiations, while Pertamina will undertake the procurement tasks under long-term supply contracts.