PT Pertamina (Persero) has reached an agreement with Freepoint Commodities Pte. Ltd., an international commodity trading company and investment company, to optimize the utilization of Pertamina’s Sambu Island Fuel Terminal on Riau Islands, by transforming it into a trading hub.
The move is part of Pertamina’s efforts to optimize the company’s assets and to supply commodities to the international market.
Pertamina Director of Logistics, Supply Chain and Infrastructure Gandhi Sriwidodo and CEO of Asia Freepoint Commodities Ouyang Xiuzhang marked the agreement with the signing of the Head of Agreement (HoA) Collaboration on TBBM Utilization at Pulau Sambu at Pertamina Headquarters, in Jakarta, Indonesia, last Friday.
Sriwidodo explained that this agreement was an important moment that was expected to contribute to Pertamina’s revenues and strategic value. TBBM Sambu Island, which is located on a separate island between Batam and Singapore is considered very strategic as a supply point for supplying commodities (BBM) that can be traded internationally.
Located between Batam and Singapore, TBBM Sambu Island could become a trading hub in the Malacca Strait. Currently, TBBM Sambu Island has a fuel storage capacity of 320,000 kiloliters (kl) with its 17 tanks.
Under the agreement, Pertamina would supply the products to be stored and blended at TBBM Pulau Sambu, while terminal operations would be optimized and supported by Freepoint. In addition, Pertamina also has the option to buy the final product from TBBM Pulau Sambu for both domestic and trading purposes.
“So far, TBBM Sambu Island has been used as a storage place for Pertamina’s BBM. In addition to providing added value, this collaboration also does not interfere with the distribution of fuel which continues to operate as usual,” said Pertamina VP of Corporate Communication Fajriyah Usman.
David Messer, founder and chairman of Freepoint Commodities, and Sheldon Pang, vice chairman of Freepoint Commodities, were also present during the signing.
“Freepoint is one of the largest fuel traders and bunker suppliers in the western hemisphere (Western Hemisphere). We are very happy to be able to join hands with Pertamina to support Indonesia’s oil infrastructure improvement plans and the development of low sulfur bunkering business Indonesia,” said Pang.
Freepoint is a company trading physical commodities and funders for upstream and mid-stream commodity assets. Freepoint also provides physical supply services and structured solutions for Freepoint work partners. Established in 2011, Freepoint is headquartered in Stamford, Connecticut, U.S.A., and has 11 branch offices worldwide.