Pertamina faces problem in buying crude from Iran

By Febry Silaban

Stated owned oil and gas firm PT Pertamina (Persero) said its plan of importing crude from Iran is hobbled by financing and payment problems.

?Negotiation is ongoing between Pertamina and Iran on the import plan of crude and LPG. We still need several weeks (to conclude the negotiation). There are still problems, particularly related to financing channeling and payment execution. Not all banks (in Indonesia) can facilitate the deal,? Pertamina?s Integrated Supply Chain (ISC) VP at Pertamina Daniel Purba said.

Daniel further said both parties are holding an intensive negotiation on the possibility of producing LPG in Cilacap refinery in Central Java.

The Indonesian and Iranian governments have agreed to cooperate in energy sector. During a bilateral meeting in February in Bogor, West Java in February of this year, Iran offered to supply crude oil, condensate and liquefied petroleum gas (LPG) as well as to develop refineries in Indonesia.

Editing by Johannes Simbolon