Indonesia's Pertamina to maintain bidding process for US energy imports

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Indonesian state oil and gas firm Pertamina [RIC:RIC:PERTM.UL] said on Friday that energy product imports from the U.S. will still be conducted through a bidding process following the conclusion of a trade deal between the two countries. Indonesia and the U.S. finalised a trade deal on Thursday that cut U.S. levies to 19% from 32%. Indonesia has plans to import $38.4 billion goods and services from the U.S., which will include $15 billion imports of energy commodities.The planned energy imports will include crude oil, LPG, and fuel products. "Regarding plans to import energy from the U.S., we are conducting business as usual through tenders and bidding, no direct appointment," Pertamina CEO Simon Aloysious Mantiri told reporters. Mantiri said imports of liquefied petroleum gas from the U.S. may rise to 70% of Pertamina's annual imports from 57% currently after the trade deal. Last year Pertamina signed a memorandum of understanding with several companies including Exxon Mobil Corp NYSE:XOM, Chevron NYSE:CVX, and KDT Global Resources.The Southeast Asian country has said that it aims to shift energy imports away from Singaporean, Middle Eastern and African sources to increase purchases from the U.S.Exxon Mobil's contract to operate the Cepu oil block in East Java will also be extended until 2055 following the trade deal, Indonesian energy minister Bahlil Lahadalia told the same press conference, adding that the extension is expected to boost investment by around $10 billion. "However, there are several matters that we must clarify including sharing and cost recovery," he said. "This will be completed shortly."

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