Pertamina crude demand seen unchanged<\/p>\n
SINGAPORE (Reuters): Indonesian state-oil company Pertamina
\nhas started to source its September crude requirements and is
\nexpected to purchase the same volumes as August, traders said
\nyesterday.<\/p>\n
\"They are in the process of buying September, but they will
\nprobably import the same as they did in August,\" a western trader
\nsaid.<\/p>\n
Traders said that offers of crude included Malaysian crudes,
\nregional condensates and Nigerian Qua Iboe.<\/p>\n
In August, traders said that Pertamina bought around 100,000
\nbarrels-per-day (bpd) of crude on the spot market, totaling
\naround six cargoes of Malaysian Tapis, Miri, Bintulu and
\nAustralian Varanus, Challis and Jabiru.<\/p>\n
Indonesia is a net exporter of crude, but imports some crude
\nto suit refinery needs.<\/p>\n
The August purchases were similar to Indonesia's average
\nmonthly imports last year, which were carried out by two of
\nPertamina's affiliates, Perta Oil and Permindo.<\/p>\n
For more than a decade, Indonesia had covered all its oil
\nneeds through Perta Oil and Permindo, which are majority owned by
\nfriends and family members of former Indonesian president
\nSoeharto.<\/p>\n
Pertamina started to trade its own accounts from July,
\nsidelining the affiliates, as reform swept the oil sector
\nfollowing Soeharto's fall from power.<\/p>\n
Traders said that Pertamina has not hit any major snags in its
\nnew role as sole importer of crude and products for the country,
\nbut it was still premature to predict that it would be smooth
\nsailing from now on.<\/p>\n
\"Traders are taking it one month at a time and one deal at a
\ntime,\" said a western trader.<\/p>\n
\"I think it will still be rough going for them in the next few
\nmonths, not everybody's really comfortable in dealing with them
\ncompared to dealing with Perta and Indoil (Permindo),\" the trader
\nsaid.<\/p>\n
\"We've only just been paid by Pertamina for our July sales,
\nbut it was with all the interest,\" a trader said.<\/p>\n
Traders said that most of Pertamina's purchases lately have
\nbeen from national oil companies, or traders and majors who
\nalready have investments in Indonesia, and which might be more
\nwilling to be flexible with credit terms.<\/p>\n
\"We have heard Pertamina requesting for payment periods of 60
\nto 120 days, and some traders are more open about giving them
\nthat in order to maintain the relationship,\" said a trader.<\/p>\n
In July, when Pertamina first entered the spot market, it
\nbought three cargoes of Malaysian crudes from state oil company
\nPetronas, on open credit terms, which did not require letters of
\ncredit.<\/p>\n
It also concluded a deal in July to buy Kutubu crude from
\nMobil, producing letters of credit from local banks although
\nMobil had initially asked for letters of credit from
\ninternational banks.<\/p>\n
\"Mobil has business in Indonesia and they were ready to be
\nmore flexible,\" said a trader with a major oil company.<\/p>\n
But an agreement for Australian producer to sell July Kutubu
\nto Pertamina fell through as Pertamina was unable to obtain
\nletters of credit from international banks as requested by the
\nseller.<\/p>\n
Subsequently, Pertamina did produce letters of credit from
\ninternational banks for a July Tapis cargo it bought from British
\nPetroleum Co Plc, although details of the trade could not be
\nconfirmed.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-crude-demand-seen-unchanged-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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