Indonesia Says to Buy Stake in Iran’s Oil, Gas Block

Indonesia Says to Buy Stake in Iran’s Oil, Gas Block

TEHRAN (Tasnim) – A senior official at Indonesia’s energy ministry said on Monday that the country’s state energy company Pertamina plans to sign a deal to purchase a stake in an oil and gas block in Iran within a week.

"The government to government agreement is done, so now (we are) following up with a company to company (deal)," Indonesia’s Oil and Gas Director General Wiratmaja Puja told reporters, as cited by Reuters.

He added that the deal was expected before the end of the Muslim fasting month. The fasting month of Ramadan is expected to end on July 5.

It will be Indonesia's first investment in Iran's upstream oil sector. Last month Pertamina inked a deal to purchase 600,000 tons of liquefied petroleum gas (LPG) from National Iranian Oil Company (NIOC).

A recent report by the International Energy Agency has shown that Iran’s oil production has returned to the level of pre-sanctions era, reaching 3.56 million barrels a day in April, the highest since November 2011.

Data also shows that Iran’s crude exports have increased to 2 million barrels a day, close to the level before a host of sanctions caused Iran’s crude production to drop dramatically.

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