Indonesia's state-owned oil and gas company PT Pertamina signed a framework agreement with Malaysia's Petronas to sell and buy crude this year, Pertamina said in a statement on Tuesday.
The agreement is a follow up to their plan last year to swap crude, Pertamina said. Pertamina will swap crude produced in its Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Petronas' Indonesian fields of Jabung and Ketapang.
The deal is aimed at cutting logistical costs for each of the companies by transporting their crude oil to refineries closer to the fields.
Under the new agreement, Pertamina will also buy around 600,000 barrels per month of gasoline from Petronas worth around $500 million.
(Reporting by Wilda Asmarini; Writing by Fransiska Nangoy; Editing by Edmund Blair)