Pertamina mulls processing crude in India

State-owned oil and gas firm PT Pertamina is planning to process crude oil imported from Iraq at refineries in other countries pending the completion of new refineries at home, with India ranks top in the list.

?We?re providing opportunities for refineries in various countries, and see which is more beneficial. Probably it will be India because of the lower processing cost,? said Hasto Wibowo, Vice President for Marketing Development at Pertamina?s Integrated Supply Chain in a statement on Wednesday.

He said that Pertamina will import the crude from Iraq following an agreement for the latter to supply about 700,000 barrels per month, in addition to 290,00 barrels per month coming from Pertamina?s West Qurna block in that country.

Meanwhile, Director General of Oil and Gas IGN Wiratmaja Puja said that the government welcomes the plan by Pertamina to process the imported crude at overseas refineries pending the completion of local new refineries.

He said that processing the crude at overseas refineries will be cheaper than Pertamina importing oil fuel products.

Editing by Reiner Simanjuntak