BPMIGAS says contractors ready to supply more crude to Pertamina refineries

Indonesian upstream authority BPMIGAS said Thursday it had identified some 100,000 barrels per day of crude from production sharing contractors? share that can be used to feed domestic refineries, but said the implementation was somewhat delayed by the red tape in the ministry of finance.

?Some 100 barrels per day of contractors? take which specification meet Pertamina?s refineries requirements are ready to be shipped (to Pertamina?s refineries), but contractors want the market price for the products, which is Indonesian Crude Price (ICP) plus a certain percentage of premium. But The ministry of finance so far only allowed Pertamina to buy them at ICP,? said BPMIGAS chairman Kardaya Warnika.

He said that the barrels mostly come from Caltex pacific Indonesia and other major Indonesian producers. Under the production sharing contract scheme, contractors get their share of production in form of crude and are free to sell their crude.

Kardaya said currently Pertamina offtakes some 650,000 barrels per day of Indonesian oil production to feed its refineries, but are asking for more to save shipping costs amid soaring crude prices. Indonesia has some 1 million per day of refinery capacity. (alex)