The United Arab Emirates will supply Indonesia with up to 30 million barrels of oil, Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas, said on Tuesday.
Djoko said the UAE ambassador to Indonesia had told officials the oil would be sent soon without working capital costs for Indonesia, including the cost of the ships carrying it, detikFinance reported. He spoke at a ceremony in Jakarta marking the completion of front-end engineering design for INPEX’s Abadi LNG project.
The commitment followed a meeting in Jakarta between Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia, UAE Ambassador Abdulla Salem Al Dhaheri and the president director of Mubadala Energy, Djoko said. Indonesia can draw on the supply at any time, Investing.com reported, citing a text message from Djoko. The UAE embassy in Jakarta did not respond to Investing.com’s request for comment.
Djoko did not give a delivery timeline or other terms of the arrangement. “This is extraordinary news for us,” he said, according to detikFinance.
Importers including Indonesia have been seeking alternative oil supplies as shipments through the Strait of Hormuz face disruption. On Monday, Bahlil said he had received instructions to secure fuel from alternative sources, Investing.com reported.
The meeting with the UAE delegation also covered the final investment decision for Mubadala Energy’s gas project in the South Andaman block off Aceh, Djoko said. Mubadala Energy operates the Tangkulo field development in the block.
