Azerbaijan, Indonesia eye further energy co-op
By Nazrin Gadimova
Azerbaijan and Indonesia are drafting a memorandum of understanding to further deepen cooperation in the energy and mineral resources sectors, the Azerbaijani Energy Ministry announced on March 29.
The draft document was discussed during the meeting of Natig Abbasov, the country’s deputy energy minister and Husnan Vanani, the newly appointed ambassador of Indonesia to Baku.
Abbasov, addressing the meeting, said Azerbaijan is interested in expanding cooperation with Indonesia in sphere of energy, adding that the intergovernmental document is of great importance in this regard.
"The Indonesian side has sent its latest proposals on the draft document and now its preparation is being completed," the deputy minister added.
The sides also discussed such issues as possibilities of investing in the oil and gas sector of Azerbaijan, mutual exchange of experiences and prospects for increasing oil supply to Indonesia.
Earlier, the Indonesian government has encouraged the country’s state oil and gas company Pertamina to invest in Azerbaijan’s oil and gas projects. Indonesia has been importing crude oil directly from Azerbaijan since 2015, which opens up great opportunity for Pertamina to acquire stakes in oil and gas blocks here.
In mid 2015, the Indonesian delegation visited Baku to mull energy cooperation and consider opportunities for the joint work with energy-rich Azerbaijan, which enjoys great experience in the oil and gas industry.
The trade between Azerbaijan and Indonesia is mostly related to the energy sector, as Azerbaijan emerged as the second biggest supplier of crude oil to Indonesia after Saudi Arabia.
The bilateral trade between Azerbaijan and Indonesia reached $101 million in 2007 and increased to around $5 billion in 2015. The trade balance is heavily in favor to Azerbaijan, as the trade volume mainly dominated by Indonesian imports for Azerbaijan's oil.
Nazrin Gadimova is AzerNews’ staff journalist, follow her on Twitter: @NazrinGadimova
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