Govt oks Pertamina's crude deal

Govt oks Pertamina's crude deal

SINGAPORE: State-owned oil company Pertamina has obtained approval from Indonesia's finance minister to proceed with a crude processing deal with Singapore Petroleum Co. (P.SPC).

The deal is aimed at covering a shortfall in domestic production when Pertamina's Balongan refinery undergoes maintenance while reducing its reliance on buying oil products from the spot market.

Pertamina's acting processing director, Dwi Kushartoyo, confirmed that Pertamina had received a letter from Indonesia's Finance Minister Boediono approving the deal.

Under the deal, SPC will process 62,500 barrels a day of Minas crude and 30,000 bpd of Iranian light crude on behalf of Pertamina for two months, Dwi said.

Meanwhile, the 125,000 bpd Balongan refinery has started trimming its operations to prepare for a 70-day turnaround delayed from Aug. 1, said a Pertamina spokesman.

Pertamina and SPC are still discussing the exact commencement date of the deal, which has been partially effected, as the refinery shutdown process started this week.

"But it will likely start in September," said Dwi.--Dow Jones