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.