Malaysia, Indonesia, Saudi Arabia sign 7-bln-usd oil pipeline deal

Malaysia, Indonesia, Saudi Arabia sign 7-bln-usd oil pipeline deal
28/05/2007 14:38:00
KUALA LUMPUR (XFN-ASIA) - Malaysian, Indonesian and Saudi Arabian firms have
signed agreements for the construction of a pipeline that aims to divert 20 pct
of oil flowing through the Malacca Strait, the project owner said.
Malaysia's Trans-Peninsula Petroleum Sdn Bhd said it signed an agreement with
Malaysia's Ranhill Engineers and Constructors Sdn Bhd and Indonesia's PT
Tripatra to build the pipeline at an estimated cost of 7.0 bln usd over seven
years.
Trans-Peninsula, the owner and promoter of the project, said it signed separate
memoranda of understanding with Bakrie and Brothers of Indonesia to supply
pipes, while Al-Banader International Group of Saudi Arabia will supply the oil.
Prime Minister Abdullah Ahmad Badawi earlier this month first announced the
development, saying it would transport Middle East oil across the north of the
Malaysian peninsula to East Asian countries.
Badawi witnessed the signing with Indonesian President Susilo Bambang Yudhoyono
on the sidelines of the annual World Islamic Economic Forum, aimed at boosting
cooperation among Muslim communities.
"When the entire project is completed in 2014, TRANSPEN pipeline will divert
about 20 pct of oil transiting through Straits of Malacca, proportionately
easing the congestion in the Straits," Trans-Peninsula said in a statement.
Half of the world's oil shipments currently pass through the 960-kilometre
Strait of Malacca, the busiest seaway in the world, which links the Indian Ocean
and the South China Sea.

Source: OSK Wirenews