Pertamina to import 1.9m barrels of crude for refineries
Friday, March 19 2010 - 01:04 AM WIB
The company`s vice president for planning and optimization, Husni Fachrudin, said 1.1 million barrels of the imported Azeri crude would be sent to Pertamina`s Balongan refinery in West Java and 600,000 barrels to its Cilacap refinery.
"The remaining 200,000 barrels will be allocated to the Balikpapan refinery on a trial basis to find a substitute for `Duri crude oil," he said.
Duri crude oil production by PT Chevron Pacific Indonesia in Riau has started to decrease, and Pertamina needed to find a light sweet oil type replacement for domestic supply, he said.
The Azeri crude oil purchase by Pertamina is in the range of 1-2 million barrels which is equivalent to 1-2 cargoes per month to ensure security of supply.
Most of Pertamina`s oil supplies are obtained domestically from the government and sharing contractors and a small part through imports.
Pertamina was recorded to have purchased some 855,000 barrels of crude oil per day in 2007.
Some 535,000 barrels came from the government by the contractor`s purchasing cooperation and the other 320,000 barrels per day were imported.
The crude oil composition imports were done by a long-term contract of 218,000 barrels per day, and 102,000 barrels per day at any time (spot).
This long-term contracts were signed by the NOC through the intergovernmental mechanism (G to G), and the spot procurement was done through trading companies through tenders. (*)