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UAE Pledges Up to 30 Million Barrels of Oil to Indonesia Amid Supply Concerns
The United Arab Emirates has pledged to supply Indonesia with up to 30 million barrels of oil, according to a senior Indonesian energy official. The commitment comes as Indonesia actively seeks to diversify its energy sources amid concerns over potential supply disruptions in the Middle East.
Details of the Agreement
Djoko Siswanto, head of Indonesia's upstream oil and gas regulator SKK Migas, announced the supply commitment on Tuesday during an energy event. He stated the agreement followed a meeting between Indonesian officials and the UAE Ambassador to Jakarta, Abdulla Salem Al Dhaheri.
According to Siswanto, Indonesia can draw upon the supply at any time, providing significant flexibility. However, he did not provide additional details regarding a specific delivery schedule. The UAE embassy in Jakarta did not immediately respond to a request for comment.
AdSecuring Supply Chains
The move is part of a broader effort by Indonesia to enhance its energy security. On Monday, Indonesian Energy Minister Bahlil Lahadalia confirmed he had been instructed to secure fuel supplies from alternative sources in light of ongoing disruptions in the Middle East.
For Indonesia, a major net importer of crude oil, securing a stable and flexible supply from a key OPEC producer like the UAE is a critical step in mitigating risks to its domestic energy market. This bilateral arrangement underscores a growing trend of consumer nations seeking direct deals with producers to safeguard against global market volatility.
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