AKR, PETRONAS HELP PERTAMINA DISTRIBUTE FUEL OIL IN 2010

Jakarta, Dec 27 (ANTARA) - Downstream oil and gas regulatory agency (BPH Migas) has declared PT Aneka Kimia Raya Corporindo Tbk (AKR) and PT Petronas Niaga Indonesia as partner companies in the distribution of subsidized fuel oil in 2010.

A BPH Migas official, Jugi Prajogio, said here on Sunday that the decision was made at a BPH Migas committee meeting on December 23, 2009.

"A letter of assignment will be delivered to Pertamina and the two partner companies on Monday (Dec 28) by Energy and Mineral Resources Minister Darwin Saleh," he said.

Yugi said further that AKR and Petronas have met the administrative, technical, and financial requirements.

"In addition, after being verified both partner companies have also met the requirements especially on infrastructure facilities," he stated.

The subsidized fuel oil quota for the two companies amounting to 129,602 kiloliters, of which AKR will distribute 109,162 kiloliters of diesel oil to 34 locations apart from the public gas stations in Medan, Deli Serdang, Binjai, Metro, Central Lampung, East Lampung, South Lampung, North Lampung, Bandar Lampung, Pontianak, and Banjarmasin.

Meanwhile Petronas will distribute 20,440 kiloliters of diesel oil to four gas stations in Medan, he said.

In accordance with the 2010 state budget, the state has set the distribution costs and margins (alpha) at Rp556 per liter.

Previously, in addition to Petronas and AKR, on October 19, BPH Migas has declared PT Shell Indonesia as a potential partner of Pertamina.

However, Shell which proposed a quota 5,110 kiloliters of premium gasoline for distribution to a gas station in Medan, did not confirm its preparedness so that it failed to join the business.