Indonesia-Venezuela on Oil and Gas Cooperation, Minister of Energy and Mineral Resources: Improve South-South Relations

Refinery illustration (Photo: antara)

JAKARTA - Indonesia and Venezuela have agreed on cooperation in the oil and gas (Oil and Gas) sector. This is also an effort to improve South-South relations.

"Indonesia wants to increase cooperation in the economic sector with Venezuela, which can also increase South-South cooperation," said Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif in Caracas, Venezuela, citing Antara.

Energy has an important role in improving the economy. Therefore, both countries can share possible business opportunities in the energy sector, especially oil and gas.

This oil and gas cooperation is outlined in a memorandum of understanding (MoU), which was signed by Energy and Mineral Resources Minister Arifin Tasrif and Venezuelan Oil Minister Pedo Rafael Tellechea.

The MoU includes cooperation in upstream oil and gas businesses, implementation of increased oil recovery, development and application of technology and best practices to reduce environmental impacts in the energy sector, carbon storage and capture and gas flaring reduction, as well as the field of -Business fields agreed upon by BUMN and the private sector between the parties without harming or adjusting to existing contracts and agreements.

Under the umbrella of this agreement, PT Pertamina (Persero), as an Indonesian state-owned company in the energy sector, through PT Pertamina International Exploration & Production (PIEP) is expected to be able to explore opportunities to acquire new oil and gas blocks in Venezuela.

This is also to strengthen the existence of PIEP, which has invested in Venezuela through the company Maurel et Prom (M&P).

Meanwhile, Pedo Rafael Tellechea, who is also President of Petroleos de Venezuela (PDVSA), underlined that the strategic agreement will improve the South American country's prospects in the Asian market.

Indonesian Ambassador to Venezuela Imam Edy Mulyono emphasized that Venezuela is an important partner for Indonesia, so it is right for Indonesia and Venezuela to strengthen relations in the energy sector. Moreover, Venezuela has quite large potential oil and gas energy resources.

The Indonesian delegation to Venezuela led by the Minister of Energy and Mineral Resources was accompanied by, among others, the Indonesian Ambassador to Venezuela Imam Edy Mulyono, the Main Director of PT Pertamina International Exploration & Production (PIEP) Jaffee Arizon Suardin, and the Main Director of PT Pertamina Hulu Energi (PHE) Wiko Migantoro.