Indonesia may lease crude storage overseas

The government plans to buy a large amount of crude and oil fuels amid market downturn to increase the country?s crude reserves and will keep the crude and fuel at storage facilities overseas, the ministry of energy and mineral resources said in a statement on Tuesday.

According the ministry, President Joko Widodo issued instruction in February to use the current low price environment as a momentum to increase the country?s crude and fuel reserves.

?We must increase our reserves. If we buy now --- on condition that we have enough money ? we shall not have enough storage facilities at home to keep them. The way out is we buy now and ask the sellers to keep them temporarily,? Minister of Energy and Mineral Resources Sudirman Said stated.

He noted however that the government has yet to decide which country to buy the crude from as discussion is still in progress over the issue.

Meanwhile, Director General of Oil and Gas IGN Wiratmaja said the idea of developing crude and oil fuel strategic reserve has been in place for long. Aside from talking with countries which have idle storage capacities, the government has launched program to build storages at home with capacities enough for 30 days of national consumption or 45 million barrels.

Editing by Johannes Simbolon