Pertamina Expects to Import Up to 250,000 bpd of Crude Oil in 2018

Indonesia will unveil a simplified scheme for tax holidays next week and state oil firm Pertamina should be among the first to benefit, government officials said. (Antara Photo/Widodo S. Jusuf)

By : Wilda Asmarini | on 6:10 PM December 12, 2017
Category : Business, Corporate News

Jakarta. Pertamina expects to import up to 250,000 barrels per day of crude oil in 2018, the head of the state-owned energy company's procurement unit said on Tuesday (12/12).

From Indonesia's crude output of around 800,000 bpd, about 500,000 bpd currently goes to Pertamina's domestic refineries, Toto Nugroho, senior vice president of the firm's Integrated Supply Chain unit, told reporters.

"Around 250,000 [bpd] is imported," he said, noting that this level would continue in 2018, with imports meeting some 40 percent of Indonesia's crude oil needs.

Pertamina's existing overseas crude processing deal with Sinopec subsidiary Unipec is due to expire at the end of this month, Toto said. Pertamina is waiting for certainty on crude output cuts by OPEC member Iraq, from which it takes a share of Basra crude, before making a new deal, he added.

"How far they will cut, we don't know yet," Toto said, adding that there was a possibility Pertamina would sign a new crude processing deal in the second half of 2018.

Pertamina's gasoline imports are expected to be at around 9 million barrels per month in 2018, Nugroho said, roughly half of which would be RON88 gasoline and half RON92 gasoline.

The company is expecting to import around 6.8 million metric tons of liquefied petroleum gas in 2018, Toto said.

Pertamina jet fuel imports are expected to climb to around 1 million barrels per month in 2018 from around 800,000 barrels per month this year "because our demand is good from the aviation sector," Toto said.

Pertamina hopes to supply around 90 percent of its import needs through term contracts, with the rest through spot market deals, Toto said.

"We only buy products on the spot market if there's an emergency," he said.

Reuters

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