Indonesia needs 3 million barrels of diesel next month
Indonesia needs 3 million barrels of diesel next month
SINGAPORE (Reuter): Indonesia's diesel import requirements for
December are estimated at three million barrels and kerosene
requirements at around 1.8 million barrels, a source with state-
owned oil firm Pertamina said yesterday.
He said Pertamina is still waiting for the December purchase
program from its affiliates and could not comment on the volumes
that have already been purchased. But he said Indonesia still
needed to buy a few more cargoes.
While most of the diesel would be sourced from the Middle East
on a cost-and-freight basis, some volumes would be obtained from
Singapore, he said.
Indonesia bought 2.2 million barrels of diesel for November
delivery.
The source said the higher import allocated for December is to
meet Indonesia's stock requirements and to prepare itself for
unforeseen incidents like the Cilacap refinery fire last month
which razed seven of 156 oil products storage tanks.
The source also said Indonesia was scheduled to take delivery
in November of a 168,000-ton diesel cargo in the very large crude
carrier (VLCC) New Brooklyn owned by Thai oil trader
International Oil Tanking.
But the VLCC encountered boiler problems off Oman on November
6 and was later towed to the United Arab Emirates, and Indonesia
had to cancel the deal.
Instead, Indonesia took delivery of another large cargo from
the tanker Salina. The source could not say who the owner of the
alternative cargo was.
However, Indonesia might still take the New Brooklyn cargo in
December if the boiler could be repaired on time, he said.
The source said, Indonesia bought most of its kerosene cargoes
for December from Singapore on a free-on-board (FOB) basis.
Traders here said the price was around U.S. 45 cents a barrel
over Singapore spot quotes fob basis. Indonesia might still have
to buy some more volumes for December to meet its import
allocation.
Pertamina bought 2.4 million barrels of kerosene in November,
about 1.6 million barrels more than its normal monthly imports as
a result of shortages following the Cilacap fire.