Unipec wins tender to process Pertamina?s crude from Iraq

Petromindo

United Petroleum and Chemical Co Ltd (Unipec), the trading arm of China Petroleum and Chemical Corporation (Sinopec), has won tender to process crude oil belonging to Indonesia?s state-owned oil and gas firm PT Pertamina.

Senior Vice President of Pertamina?s Integrated Supply Chain, Daniel Purba said over the weekend that Unipec refinery will process Basra crude from Iraq belonging to Pertamina at a volume of 1 million barrels per month into 1 million barrels of fuel oil with RON 88 starting July until December of this year.

He said that Unipec outbid other refinery operators during the tender as the Chinese firm offers better price and has plenty of refineries with combined capacity of 4-5 million bpd.

Daniel said that Pertamina?s domestic refineries can?t process the Basra crude produced from West Qurna-1 block in Iraq, in which Pertamina owns an interest, and purchased from Iraq?s State Organization for Marketing of Oil (SOMO), with total volume of six million barrels.

Daniel said that the processed output will be shipped to Indonesia with transportation cost bore by Unipec. He said that the contract with Unipec is expected to be signed this month.

Last year, Pertamina processed the Iraq crude at a Singapore refinery owned by Shell International Eastern Trading Company (SIETCO). (*)