Pertamina aborts crude processing deal with SRC, Exxon
Thursday, November 9 2000 - 07:30 AM WIB
State oil and gas company Pertamina said it had aborted negotiations with Singapore Refinery Company (SRC) and Exxon Mobil on crude processing deal.
Pertamina's processing director Ariffi Nawawi said Pertamina had decided to discontinue negotiations with both companies because the concession demanded by both companies "are economically unacceptable."
"It's Pertamina which decided to bring an end to the negotiations," Ariffi told legislators during a meeting between Pertamina and the House of Representatives' Commission VIII, which oversees mines and energy affairs.
Pertamina has clinched deals with Malaysian state oil and gas company Petronas and Shell International Trading Company (Sietco) which allow the latter to respectively process 20,000 and 50,000 barrels of crude oil owned by Pertamina.
Pertamina earlier said it expected to make a similar deal with Exxon Mobil to refine 50,000 barrels of crude oil owned by the state company. It however did not specify the volume of oil SRC is expected to refine.
Pertamina made crude processing deals with overseas refineries following the technical problems being experienced by some of its refineries. (Godang and Epin)