ESDM to prepare additional rules for oil imports from Russia

Tangerang, Banten (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) is preparing additional rules and a framework for importing crude oil from Russia.

“That (Russia oil imports) will also be supported by additional regulations,” said the Director General of Oil and Gas (Dirjen Migas) at the ESDM, Laode Sulaeman, when approached on the sidelines of the IPA Convex conference in Tangerang, Banten, on Wednesday evening (20 May).

According to Laode, the government needs to prepare additional regulations and an import scheme, because oil products from Russia require special treatment.

Pertamina, as a state-owned enterprise active in the oil sector, operates using global bonds. Therefore, Pertamina must avoid things that could breach its global bond covenants.

“Pertamina’s business uses a global bond. It must avoid anything that could breach its global bond. That’s why the scheme is being processed, yes,” Laode said.

On Friday (24 April) Deputy Minister of ESDM Yuliot said that regulations or a legal umbrella are being prepared to govern the plan to import 150 million barrels of crude oil from Russia.

There are two options currently being considered by the government to import 150 million barrels of crude oil from Russia.

If using the first option, Yuliot said there are specific consequences if a state-owned enterprise imports from Russia.

Therefore, the other option being considered is to import via BLU. He hopes there will be ease, including financing, if importing via BLU.

The move is part of realising the commitment to import 150 million barrels of oil from Russia, to be carried out gradually until the end of 2026, which is the result of President Prabowo Subianto’s visit to Russia.