ID :
54849
Fri, 04/10/2009 - 20:12
Auther :
Shortlink :
http://m.oananews.org//node/54849
The shortlink copeid
M'SIAN COMPANY TO JOINTLY DEVELOP PETROLEUM CITY IN INDONESIA
SEREMBAN (Malaysia), April 10 (Bernama) -- Al-Aidid Petro Corporation Sdn Bhd (APCSB), is set to undertake the development of an integrated petroleum city on Breueh Island in northern Aceh, Indonesia.
The company is a special purpose vehicle set up by three companies, namely
Aceh World Trade Centre (AWTC) from Indonesia and Malaysian companies Khairi &
Zakri Holdings and Al-Aidid (M) Sdn Bhd,
An agreement for the joint development of the city was signed on Monday by
APCSP with Sabang Freeport and Free Trade Zone (BPKSS) a shareholder of the Aceh
province and the ruler of Aceh province, APCSB's president, Mohammad Aidid
Zakaria told Bernama.
He said APCSB which has the expertise in the management and engineering of
oil and gas development had been given several assurances by the government of
Aceh in relation to the project.
"Under a joint venture agreement signed by the government of Aceh, BPKS and
APCSB, the ruler of Aceh has given several guarantees including project
financing or project funds, and also the assurance that the joint venture
company will be the sole company of Aceh province involved in oil and gas in
Aceh," he said.
The government has also guaranteed that all shipping and port operations
around Aceh island will be the responsibility of the joint venture company
to be formed.
He said BPKS will provide a 1,200-hectare piece of land needed for the
development of water, oil and gas facilities on Breueh Island.
BPKS and the ruler of Aceh will be also responsible for securing all permits
and licenses so that the joint venture company could function as an oil and gas
company owned by the Aceh province.
Meanwhile, Mohammad Aidid said that besides managing the development of the
project, APCSB will be also responsible for getting the funds to finance the
project and subsequently carry out the daily operations of Aceh's oil and gas
industry.
"Under the deal, APCSB's responsiblity will be for 20 years only.
During this period, APCSB will have an equity or share of 35 percent while BPKS
on behalf of Aceh's ruler, will hold 65 percent. After the 20 years, BPKS will
be able to buy up to 25 percent share of APCSB. At the end of the 20-year
period, we would be holding an equity of 10 percent only," he said.
"What is important is that we have promised the transfer of technology, in
fact we have proposed what we call the "Acehnisation Programme" where under the
programme (there will be transfer of technology) for all construction and
building works, not only at the petroleum city on Breueh Island, but indeed for
all the downstream and upstream activities in the oil and gas industry," he
said.
Mohammad Aidid said while the development of the city will be undertaken in
stages, APCSB at the same time will also carry out initial oil and gas
exploration works including survey.
He also disclosed that Aceh had the potential of becoming a leading producer
of oil in the world.
"Following the Dec 26 tsunami tragedy, there have been accidental findings
of hydrocarbon by experts from Indonesia and Germany in the areas affected by
the earthquake which triggered the tsunami," he added.
-- BERNAMA
The company is a special purpose vehicle set up by three companies, namely
Aceh World Trade Centre (AWTC) from Indonesia and Malaysian companies Khairi &
Zakri Holdings and Al-Aidid (M) Sdn Bhd,
An agreement for the joint development of the city was signed on Monday by
APCSP with Sabang Freeport and Free Trade Zone (BPKSS) a shareholder of the Aceh
province and the ruler of Aceh province, APCSB's president, Mohammad Aidid
Zakaria told Bernama.
He said APCSB which has the expertise in the management and engineering of
oil and gas development had been given several assurances by the government of
Aceh in relation to the project.
"Under a joint venture agreement signed by the government of Aceh, BPKS and
APCSB, the ruler of Aceh has given several guarantees including project
financing or project funds, and also the assurance that the joint venture
company will be the sole company of Aceh province involved in oil and gas in
Aceh," he said.
The government has also guaranteed that all shipping and port operations
around Aceh island will be the responsibility of the joint venture company
to be formed.
He said BPKS will provide a 1,200-hectare piece of land needed for the
development of water, oil and gas facilities on Breueh Island.
BPKS and the ruler of Aceh will be also responsible for securing all permits
and licenses so that the joint venture company could function as an oil and gas
company owned by the Aceh province.
Meanwhile, Mohammad Aidid said that besides managing the development of the
project, APCSB will be also responsible for getting the funds to finance the
project and subsequently carry out the daily operations of Aceh's oil and gas
industry.
"Under the deal, APCSB's responsiblity will be for 20 years only.
During this period, APCSB will have an equity or share of 35 percent while BPKS
on behalf of Aceh's ruler, will hold 65 percent. After the 20 years, BPKS will
be able to buy up to 25 percent share of APCSB. At the end of the 20-year
period, we would be holding an equity of 10 percent only," he said.
"What is important is that we have promised the transfer of technology, in
fact we have proposed what we call the "Acehnisation Programme" where under the
programme (there will be transfer of technology) for all construction and
building works, not only at the petroleum city on Breueh Island, but indeed for
all the downstream and upstream activities in the oil and gas industry," he
said.
Mohammad Aidid said while the development of the city will be undertaken in
stages, APCSB at the same time will also carry out initial oil and gas
exploration works including survey.
He also disclosed that Aceh had the potential of becoming a leading producer
of oil in the world.
"Following the Dec 26 tsunami tragedy, there have been accidental findings
of hydrocarbon by experts from Indonesia and Germany in the areas affected by
the earthquake which triggered the tsunami," he added.
-- BERNAMA
