Indonesia will become net fuel importer in 2005

Indonesia will become a net oil importer by the year 2005, according to a survey made by Institute of Energy and Economics of Japan as reported by Koran Tempo on Wednesday.

The institute said that Indonesia, China, South Korea, Malaysia and Brunei Darussalam would import at least 430,000 barrels of fuel products per day. The institute also indicates that imports of fuel products from these countries have showed an increase of 4.9 percent a year since 2000, while the fuel demand at the domestic market is estimated to reach 12.43 million barrels per day in 2005. The demand reached 2.25 million barrels in 1999.

Meanwhile according data issued by the Middle East Economic Survey, Indonesia?s crude oil production was stable at 1.120 million barrels per day, which is still lower than the production quota of 1.125 million barrels per day set by the Organization of Petroleum Exporting Countries (OPEC) to Indonesia.

However, Pertamina?s director for upstream operation, Iin Arifin Tukhyan, estimated that Indonesia?s crude oil production would increase by 380,000 barrels per day in 2004.

The increase is expected to flow from new oil fields operated by Conoco Indonesia, ExxonMobil and Unocal Corp.

At present the country?s crude oil production totaled 1,320 barrels per day, of which 650,000 barrels are produced by PT Caltex Pacific Indonesia. Of the total production, 750,000 barrels are processed at the local oil refinery, while the other 650,000 barrels are exported. About 500 barrels of the total are owned by oil producers, which produce the oil under production sharing contracts with Pertamina.

Indonesia?s seven oil refinery consume about 1 million barrels of crude oil per day, and about 250,000 of the demand are imported. Indonesia, however, still imports fuel of about 150,000 barrels per day to meet the demand which reaches about 400,000 barrels per day.(*)