BP Migas commences tender to sell crude
BP Migas commences tender to sell crude
The Jakarta Post, Jakarta
Oil and gas upstream regulatory agency BP Migas is selecting
firms for a six-month contract to sell condensate and crude oil.
BP Migas deputy head of finance, economy and marketing Eddy
Purwanto said on Tuesday that the agency was selecting, through
open bidding, three firms to sell a total of 625,000 barrels of
condensate and crude oil per month, including 100,000 barrels of
Cinta crude, 250,000 barrels of Duri crude and 250,000 to 275,000
barrels of Senipah condensate.
Some 30 companies are participating in the tendering process,
which commenced last week. Among them are European trade group
Vitol, the trading units of Total and Unocal, Pertamina Energy
Trading Ltd (Petral), Korean-Indonesian Petroleum company
(Kipco), Japanese traders Itochu Corp. and Mitsui & Co..
One firm will be selected to sell Cinta crude and two others
will be given rights to sell Duri crude and Senipah condensate
respectively for six months, from August to January next year.
"We are evaluating the tender participants. The winners will
be announced later this week," Eddy said.
Eddy did not elaborate on the expected revenue for the
government, but said the crude and condensate would be sold above
the price specified in the Indonesia Crude Price index (ICP).
The ICP is the average price of several crudes produced in
Indonesia.
Under production-sharing contracts, the government takes 85
percent of oil contractors' crude oil and condensate output and
leaves the rest to contractors.
In the past, Pertamina held the right to sell the government's
oil and condensate take, for which the state firm received a
commission. However, under Oil and Gas Law No. 22/2001, BP Migas
takes over the selling rights.
According to Eddy, the current tender is the third held by BP
Migas to select sellers of the government's oil and condensate.
Indonesia crude oil output has been declining in the past five
years due to aging oil fields and faltering investment in the
sector. It is the only country in East Asia to have joined the
Organization of Petroleum Exporting Countries (OPEC). However, it
now produces 1.075 million barrels a day of crude and condensate,
far below the country's output quota of 1.27 million bpd set by
OPEC.