Indonesia-Vietnam Improves Bilateral Cooperation on Gas and Coal Utilization

By : Hariyanto And Aldo Bella Putra | Thursday, August 24 2017 - 18:00 IWST

5166 - Jakarta - Minister of Energy and Mineral Resources (ESDM), Ignatius Jonan and Minister of Industry and Trade of Socialist Republic of Vietnam Tran Tuan Anh, signed cooperation between Indonesia and Vietnam on Wednesday (23/8/2017) at the State Palace. The signing of this cooperation was witnessed by the President of the Republic of Indonesia, Joko Widodo and Secretary General of the Communist Party of Vietnam, Nguyen Phu Trong.

In cooperation between Indonesia and Vietnam, there are two Memorandum of Understanding (MSP) signed, namely in the field of gas utilization in the region of the boundary of the continent and the utilization of coal for power generation.

"The purpose of this MoU signing is to facilitate and enhance bilateral cooperation in the field of gas utilization in cross border areas and the utilization of coal for power generation with the principle of equality and mutual benefit of both countries," said Jonan.

Discussion on cooperation between Indonesia and Vietnam, especially is in the utilization of gas in the cross-border region of continent initiated by Directorate General of Oil and Gas (Ditjen MIgas) since March 2017. Then a meeting was held in The 7th Indonesia - Vietnam Joint Commission on Economic, Scientific and Technical Cooperation (JC-ESTC) in Hanoi, Vitenam on 12 August 2017.

At JC-ESTC, the two sides agreed to support and facilitate companies from both countries in implementing oil and gas exploration and exploitation cooperation projects, seeking new cooperation opportunities, especially the Project Tuna in Natuna Sea, provision of oil and gas technical services, and cooperation on coal utilization.

"Both sides are also aware of the increasing demand for coal for power plants in both countries," he said. "Indonesia welcomes Vietnamese companies to import coal from Indonesia and invest in Indonesia's coal mining sector," Jonan said.

Indonesia and Vietnam MPS will be valid for 5 years, until 2022. "This cooperation is possible to be extended with a joint written agreement if the results are good," said Jonan.

Overall, Indonesia-Vietnam cooperation in the field of gas utilization includes:

A) Collective study on the utilization of gas in border areas;

B) A joint study of the development of gas infrastructure in border areas;

C) Feasibility study related to gas pipeline connectivity in each border area;

D) Supervise SKKMIGAS (Special Unit for Upstream Oil and Gas Operations) and PetroVietnam (Viet Nam Oil and Gas Group), or through its affiliated companies to utilize gas in border areas;

E) Promote dialogue and consultations among all interested parties in relation to the exchange of information;

F) Other fields that can be agreed upon by both countries; and

G) This MSP shall not reduce any party relating to the Maritime border as well as their rights and obligations in their respective maritime zones pursuant to UNCLOS 1982.

While cooperation in the field of coal utilization includes:

A) Promote business and investment activities in the field of coal.

B) Support and facilitate cooperation between companies and public entities of both Contracting Parties.

C) Exchanging and updating information primarily in relation to best practice laws, policies, regulations, programs and guidelines;

D) Formation of joint projects related to scientific and technical cooperation with a focus on coal;

E) Improving capacity building through cooperation in the field of training and education;

F) Coal joint seminars, trainings and conferences, involving the participation of governments, public entities, research bodies, and the private sector;

G) Other areas that may be agreed upon by the parties. (Tan)

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