JAKARTA (RambuEnergy.com) – PT Chevron Pacific Indonesia (CPI) in the past sold the portion of crude oil, known as Sumatran Light Crude (SLC) and Duri Crude (DC) from Rokan Block, Riau, to the international market.
However, the portion of the crude that has become the right of Chevron, is now sold to the domestic market through PT Pertamina, as part of the government’s drive to reduce crude imports. The crude is processed into fuel by Pertamina.
Pertamina said in an initial stage, Pertamina will receive 2.5 million barrels of oil per month in the period of January to June 2019 from Chevron.
The inauguration of the oil lifting was held on Tuesday (Jan. 15), attended by senior officials of both companies and Deputy for Finance and Monetization of SKK Migas Parulian Sihotang and VP Supply Export Operation of Pertamina Agus Witjaksono as well as an expert staff of the Energy and Mineral Resources Ministry Sampe L. Burba.
President Director of Pertamina Nicke Widyawati explained that Pertamina also absorbs the crude, which is the right of the PSC (Chevron) in order to meet the need of Pertamina’s refineries. Pertamina will also absorb optimally crude oil produced by other PSCs.
Indonesia last year suffered huge trade deficit of over US$8 billion, partly due to the import of crude oil and fuel products.
Pertamina’s Widyawati appreciates Chevron for its willingness to sell its crude oil to domestic market through Pertamina.
Director General for Oil and Gas at the Energy and Mineral Resources Ministry Djoko Siswanto welcome the B-to-B agreement between Pertamina and CPI. “This will strengthen our energy security,” he said.
Based on the ESDM Ministerial Decree No. 42, 2018, crude oil portion which is the right of the production sharing contractors (PSCs) is given priority to be sold to the domestic market.
Chevron Pacific Indonesia’s President Director Albert Simanjuntak said Chevron “welcome the agreement” with Pertamina and hopes the cooperation will more benefits to the government and the people of Indonesia.
Pertamina has also reached similar agreements with other PSCs, such as RH Petrogas Ltd, PT SPR Langgak, PetroChina International Jabung Ltd, PT Bumi Siak Pusako, Saka Pangkah Indonesia Ltd, PT Energi Mega Persada Tonga, Petronas Carigali Ketapang I Ltd, Husky CNOOC Madura Ltd and PT Energi Mega Persada Tbk. The agreements help reduce crude imports by 115,000-250,000 bpd. (*)
Written by Staff Writer, edited by Roffie Kurniawan (email: email@example.com)