Pertamina changes ICP formula

Pertamina changes ICP formula

SINGAPORE (Reuters): Indonesian state oil company Pertamina
will change the formula for its official term Indonesian Crude
Price (ICP) starting in April, traders said yesterday.

They said the new formula for its crude sales will use a third
of the Asian Petroleum Price Index (APPI), a third of the daily
Platt's quotes, and a third of RIM Intelligence Co.

Currently, the APPI portion makes up half the formula, while
Platt's and RIM quotations each make up a quarter.

This is the third time that Pertamina has adjusted its crude
price formula in the last four years.

With each change, Pertamina reduced the APPI portion by a
certain percentage.

Pertamina reviews its crude pricing formula every six months,
following a buyers' forum.

The state oil company had proposed the changes to buyers in
October, but decided to postpone the implementation as it was
still studying the new formula.