20000228

Indonesia urges regional plan on oil

BANDAR SERI BEGAWAN: Indonesia and its neighbours Brunei and Malaysia should consider a common strategy on oil and gas output and exports, Indonesian President Abdurrahman Wahid said on Sunday.

"It was a good idea if the Brunei Petroleum Unit, together with Brunei Shell, Indonesia's Pertamina and Malaysia's Petronas map out a plan towards this." he said after a one-day visit to Brunei, the tiny sultanate on Borneo Island.

Wahid, who met Brunei's ruler Sultan Hassanal Bolkiah for bilateral talks, said he told the Sultan that the three Moslem and oil-producing countries should "build on their common heritage". He did not elaborate.

He also said Indonesia would send its students to Brunei to study petroleum engineering.

Indonesia is the only Asian member of the Organisation of Petroleum Exporting Countries.

Brunei is southeast Asia's third-largest crude oil producer behind Indonesia and Malaysia, with reserves expected to last at least another 20 years.

The sultanate's ample oil and natural gas reserves are exploited by a 50-50 venture between the government and the Royal Dutch/Shell group RD.ASSHEL.L.

Indonesian state oil company Pertamina said last month it was discussing a deal with Malaysian state oil firm Petronas for the supply of gas from its West Natuna field.

Malaysian Prime Minister Mahathir Mohamad will visit Indonesia on March 9-10 for talks with Wahid.-Reuters