Pertamina launches crude oil online procurement tender

State oil and gas company PT Pertamina (Persero) has joined an online tender in Singapore for the procurement of crude oil in order to promote transparency and to obtain best price to meet its crude oil needs.

Pertamina began the open tender via a Platts Window platform last week through Pertamina Energy Services? (PES) office in Singapore on Dec.20, making it the first energy in Asia to purchase crude oil through an open tender. For the refined oil products, Pertamina began the purchase through open tender in April, this year, Pertamina said in announcement on Thursday.

PES is a subsidiary of Pertamina Energy Trading Limited (Petral), responsible for dealing with the company?s trading activities.

Pertamina will use the open tender mechanism in procuring crude oil/oil products from the spot market which now supplies 30 percent of Pertamina's needs. The remaining 70 percent will be procured through terms contract with producers.

Speaking to reporters after Pertamina joined the open tender for crude oil procurement for the first time in Singapore, last week, PES president director Nawazier said that the company would continue to buy from a closed-tender mechanism even though it had decided to take part in the open-tender.

?I hope that in the future, purchasing through trading windows will represent 70 percent of our deals,? he was quoted as saying.

He explained that the new mechanism was much easier and more efficient, with bidding sessions lasting only 30 minutes, while the closed tenders needed at least three days for document submission and decision making.

Pertamina has to import between 350,000 and 400,000 barrels of crude oil per day to meet the domestic market demand. In 2010, Indonesia?s oil production is estimated to reach only 960,000 barrels per day, while the domestic need reaches almost 1.4 million barrels per day. (giok)