Two PSC holders agree to sell crude to Pertamina
Friday, October 23 2015 - 01:20 AM WIB
State-owned oil and gas firm PT Pertamina (Persero) said PSC holders have agreed to sell their oil production share to the firm to meet the crude needs of the firm's refinery.
"Of about 6-7 PSC holders that we have approached, two have agreed to sell their production shares to us. We receive a total of 120,000 bopd from them," Pertamina's Processing Director Rachmad Hardadi said in Jakarta without providing the identities of the PSC holders.
"Hopefully in December, we?ll get additional supply," he said.
Last September, the Ministry of Energy and Mineral Resources has asked the country?s PSC holders to sell their crude and condensate production shares domestically, rather than export them, in order to meet the domestic needs. Exports of crude oil and condensate are estimated reach 400,000 barrels per day each year, 200,000 bpd of which can potentially be processed in domestic refineries. Should that happen, the government can save up to US$3.8 billion in foreign exchange reserves per year, according to the ministry.
Pertamina routinely imports huge volume of crude and oil products, spending billions of dollar each year in the process. This is one of the factors that put consistent pressure on the rupiah.
Editing by Johannes Simbolon