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Ministry gives assurances Saudi attack will not affect Indonesia's oil supplies
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Energy and Mineral Resources Ministry oil and gas director general Djoko Siswanto (Courtesy of/The Energy and Mineral Resources Ministry)
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n Energy and Mineral Resources (ESDM) Ministry official said on Tuesday that the recent attack on oil facilities in Saudi Arabia would unlikely affect Indonesian oil supplies because the former's production remained sufficient to fulfill export commitments to the latter.
ESDM acting oil and gas director general Djoko Siswanto said Indonesia imported around 110,000 barrels of oil per day (BOPD) from Saudi, which was only 0.8 percent of the 13.6 million BOPD produced by the Middle Eastern country.
“The supplies disrupted were 5.7 million BOPD while Saudi Arabia produces 13.6 million BOPD, so there’s still 7.9 million BOPD of supply,” he told reporters in Jakarta, “The commitments to export oil to other countries shouldn’t face a problem.”
The attack by Houthi rebels from neighboring Yemen, where a Saudi-led coalition is bogged down in a five-year war, hit two sites owned by state-run energy giant Aramco and effectively shut down 6 percent of the global oil supply.
The attack also triggered an oil price surge as global benchmark brand Brent climbed 14.4 percent to $68.9 per barrel on Monday, according to Bloomberg data.
Brent prices cooled down to $67.83 per barrel on Tuesday morning.
“ICP prices are $5 cheaper than Brent. So $67 minus $5 equals $62 per barrel. We recently set ICP prices at $63 for 2020, so it’s still within the target range,” he said in reference to the Indonesia Crude Price stated in next year's state budget draft.
From a different perspective, Saudi Arabia contributed one-seventh of the 763,780 BOPD – both crude oil and processed fuel – imported by Indonesia last year, according to ESDM data.
Hence, the government was also ready to buy oil from rival American energy company Exxon, which runs the Cepu Block in Central Java, in case Saudi Arabian supplies are disrupted, said Djoko.
