High import fuel prices hit Pertamina's cashflow

State oil and gas company Pertamina has approached the government for extra help in paying for imported oil, whose high price has weakened the company's cash flow, a a senior company official was quoted by reuters as saying friday.

Although Indonesia is an oil exporter, Pertamina still imports certain oil products and grades of crude oil, with the former equivalent to around six million barrels per month and the latter normally running between four and six million barrels.

"We import oil products and crude oil. It is clear that current developments will weaken our cash flow," Pertamina president director Baihaki Hakim told reporters.

Pertamina had pay for any imports of oil products and crude oil before it could claim reimbursement from the finance ministry, he said.

"We have talked with Finance Minister (Boediono) on this issue. The minister understands about Pertamina's problem and will seek solutions," Hakim said.

Jumping oil prices paused for breath on Friday after a rollercoaster ride that saw crude strike 12-year highs the previous day, with the prospect of war in Iraq underpinning the market.

U.S light crude futures (CLc1) were up six cents at $37.26 a barrel at 0723 GMT after shedding 1.3 percent, or 50 cents, in New York on Thursday.

Pertamina recently estimated Indonesia's oil products consumption would rise to 60.92 million kilolitres (383 million barrels) this year from an estimated 58.1 million kilolitres (365 million barrels) in 2002.(*)