Pertamina refuses to buy crude from Belanak

State-owned oil and gas company PT Pertamina has rejected oil and gas industry regulator BP Migas? offer to buy crude oil from Belanak oil field in Western Natuna block.

The main reason for refusal to buy crude from Belanak oil field was the high content of mercury in the crude, which is not suitable for the Pertamina? oil refinery?s specification.

Belanak field is being managed by ConocoPhillips Indonesia.

?I have already conveyed to the Pertamina to buy oil from Belanak oil field. But Pertamina has decided not to buy due to higher level of mercury than the refinery?s specification. Therefore, it is not the issue of price,? BP Migas chief Kardaya Warnika said on Monday in Jakarta.

The plan to sell Belanak?s crude to Pertamina is a part of effort to cut the burden of oil import bill. The purchase of crude from domestic sources will save foreign exchange and price is much is cheaper than the international price, which is now hovering at US$60 per barrel.(godang)