Saudi Arabia’ Aramco threatens to stop oil supply to Pertamina

Saudi Arabia’s oil and gas company Aramco, the main supplier of crude oil to Indonesia, has threatened to stop its crude supplies to Indonesian state-owned oil and gas firm PT Pertamina if the latter fails to pay US$700 million to the former, the Bisnis Indonesia newspaper reported in its Saturday edition.

A source told the Bisnis that the Saudi company demanded Pertamina must clear the oil bill, which has now reached $700 million.

“Until now PT Pertamina has not yet paid its debt arising from the purchase of crude oil from that (Aramco),” the source said.

Aramco gave Pertamina the deadline until the end of July 2004 for the payment of the oil bill. If Pertamina fails to clear the bill before the deadline, Aramco will stop its supply of crude oil to Indonesia.

Pertamina’s director of finance Alfred A. Rohimone confirmed the news that Pertamina has yet to make payment to Aramco.

“Certainly, we will make the payment before the deadline, which they gave to us. There is no need to worry because there are so many alternative ways to make the payments,” Alfred said. (*)