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Indonesia’s Pertamina in talks with domestic crude producers as imports quota seen lower

Wednesday, 15 January 2020 | 20:00

Indonesia’s state oil and gas company PT Pertamina said it is negotiating with domestic oil contractors to secure crude supply, due to restrictions on its import quota.

The energy ministry on Tuesday permitted Pertamina to import 50 million barrels of crude oil in 2020, about 30 million barrels short of what the company had sought.

“For 2020, Pertamina will continue to optimise absorbtion of domestic crude oil,” the company said in a statement late on Tuesday. “At the moment negotiations are ongoing.”

The Indonesian energy ministry issued a regulation in 2018 asking oil and gas contractors to prioritise Pertamina and other domestic refinery operators as buyers for crude produced from the country’s blocks in its efforts to reduce energy imports.

Pertamina last year bought 147 million barrels of crude oil from 43 producers in Indonesia, which helped reduced imports of crude by over 30%, according to the company. It imported 212,000 barrels per day of crude oil last year.

Pertamina official said in November that the company was planning to seek crude oil in May for July-December delivery for its Cilacap refinery. That would follow a purchase of 950,000 barrels of U.S. crude per month for February-June delivery.
Source: Reuters (Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by Shailesh Kuber)

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