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Pertamina signs crude oil contracts with 11 companies
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The logo of state-owned oil and gas holding company Pertamina (Courtesy of/3dwarehouse.sketchup.com)
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tate-owned oil and gas holding company Pertamina’s wish to reduce crude imports is likely to be granted after it signed crude oil supply contracts with 11 oil and gas contractors operating in Indonesia (KKKS).
The contract agreements were based on Energy and Mineral Resources Ministerial Regulation No. 42/2018 on domestic utilization priority of crude oil produced in the country.
Pertamina media communications manager Arya Dwi Paramita said the company, which was appointed by the government to buy crude oil produced in Indonesia, was ready to absorb the crude oil sold by the oil companies.
“It is important to reduce imports and meet domestic demand,” Arya said in Jakarta on Wednesday as quoted by kontan.co.id. He, however, did not explain the details of the contracts, including the scheme’s value.
Arya said the volume of the contracts were different for each oil company, depending on the bilateral agreement.
He stressed that Pertamina respected the business aspect of each company, adding that it wanted to buy as much crude oil as possible from them.
The ministry’s oil and gas director general, Djoko Siswanto, also declined to elaborate, but he stressed that the volume of contracts was high enough, adding that Pertamina would, for example, buy 90,000 barrels of oil per day (bopd) from PT Chevron Pacific Indonesia.
If all the companies sold their crude oil to Pertamina, the company could reduce imports by 225,000 bopd, Djoko said.
The 11 companies are, RH Petrogas Limited, PT SPR Langgak, PetroChina International Jabung Ltd., Bumi Siak Pusako, PT Chevron Pacific Indonesia, SAKA Pangkah Indonesia Ltd, PT Energi Mega Persada Tonga, Petronas Carigali Ketapang I Ltd, Husky CNOOC Madura Ltd, PT Energi Mega Persada Tbk and PetroChina International (Bermuda) Ltd. (bbn)
