Pertamina processes fuels in Singapore
Monday, August 28 2000 - 03:30 AM WIB
At least 100,000 barrel per day (bpd) of crude belonging to state oil firm Pertamina is processed into fuels in Singapore to help secure domestic fuel supplies prior to the fuel price increases in October.
Pertamina said that four oil companies were involved in the processing of Pertamina's crude, namely Exxon-Mobil, Shell, British Petroleum (now, Beyond Petroleum or BP) and Singapore Petroleum.
"I have just returned from Singapore to discuss crude processing deal with refineries there. They wanted to help us," he said in Jakarta last weekend.
Baihaki said the four oil firms had agreed to share the processing of 100,000 bpd crude. He noted Pertamina got better prices by sending crudes to those four refineries rather than buying fuels in the spot market.
Moreover, buying fuels in the spot market has greater risk for Pertamina. "It's not impossible, we have the money, but there are no fuels."
He added that when the crude processing deal had been sealed, domestic fuel stocks would be in check. (*)