Pertamina interested in taking crude from 14 PSCs
Saturday, September 12 2015 - 03:33 AM WIB
State owned oil and gas firm PT Pertamina (Persero) is interested to take crude and condensate amounting to 200,000 barrels per day from 14 production sharing contract (PSC) holders.
"On Tuesday (8/9), SKK Migas (upstream authority) held a meeting with Pertamina and the PSC holders. During the meeting, Pertamina expressed interest to take crude from some particular fields owned by the PSC holders," Chairman of SKK Migas Amien Sunaryadi said in Jakarta.
According to Amien, the PSC holders have given a positive response to the government?s call on them to sell their oil production share domestically, rather than export them; but they said they have to first report to their respective headquarters. "We hope there would be decisions next week," he said.
As for condensate, it is needed by PT Trans Pacific Petrochemical Indotama (TPPI). The condensate will be supplied to Pertamina once the state firm has taken over TPPI, Amien added.
Director General of Oil and Gas, I Gusti Nyoman Wiratmaja confirmed that TPPI will be taken over by Pertamina in October.
He also confirmed that a total of 14 PSC holders are ready to supply 200,000 bpd of crude and condensate for Pertamina. ?I will not release the names of the companies until after there are deals between them and Pertamina. The prices will be determined through B-to-B negotiation," Wiratmaja said.
The Ministry of Energy and Mineral Resources has asked the country?s PSC holders to sell their crude and condensate production shares domestically, rather than export them, in order to meet the domestic needs. Exports of crude oil and condensate are estimated reach 400,000 barrels per day each year, 200,000 bpd of which can potentially be processed in domestic refineries. Should that happen, the government can save up to US$3.8 billion in foreign exchange reserves per year, according to the ministry.
Pertamina routinely imports huge volume of crude and oil products, spending billions of dollar each year in the process. This is one of the factors that put consistent pressure on the rupiah.
Editing by Johannes Simbolon