Ampol expected to sign import contract

Press, 15 October 1976, Page 16

Ampol expected to sign import contract

Ampol Petroleum, Ltd, is expected to sign a contract next month for the purchase of Indonesian crude oil, which may swing the balance of trade between Australia and Indonesia into Indonesia's favour. : Ampol has signed a letter of intent with the Indonesian Government, and is holding talks with several companies, including Pertamina, Total, Caitex, and the Indonesian independent oil producers company. The talks have been going on for more than a year, but news of the proposed multi-million-dollar deal broke only a few days before the Australian Prime Minister (Mr Fraser) arrived in Indonesia for a four-day visit. Industry sources said that the contract would be for five years, and would initially involve delivery of 10,000 barrels a day, but Ampol is said to be seeking an option to increase its imports from Indonesia to a maximum of 40,000 barrels a day. If the deal is successfully

concluded, and if Ampol buys as much as 40,000 barrels a day. Indonesia's trade deficit with Australia, totalling about sAustl6oM last year, would be more than wiped out.

The first deliveries under the contract are scheduled for early next year, industry sources say. Indonesian crude is chemically similar, and therefore ideally suited, to be mixed with Australian crude.