Pertamina mulls change in oil import policy
Pertamina mulls change in oil import policy
SINGAPORE (Reuters): Indonesian state oil firm Pertamina is
considering a change to the way it imports oil products by
securing some barrels via an affiliated company, traders said on
Thursday.
Traders said the shift would probably mean that Perta Oil --
an affiliated company of Pertamina -- would supply part of
Pertamina's oil products needs on a regular monthly basis.
Pertamina currently awards spot imports through monthly
tenders.
"We think Pertamina will allocate a portion of its
requirements to Perta and tender on the spot market for the
remainder," said a Singapore trader.
The mechanism of the new process was still unclear and
officials at Perta and at Pertamina were not available for
comment.
Pertamina's recent spot imports via tender each month have
amounted to 1.2-1.8 million barrels of gas oil, about one million
barrels of gasoline and 200,000-400,000 barrels of fuel oil.
Traders said the new import process would not change import
volumes, but it might attract more suppliers to Indonesia. Some
companies, which had previously shied away from direct dealings
with Pertamina, may consider selling through Perta, traders said.
"When sellers deal with Perta it will be on a private
negotiation basis, rather than offering into a (Pertamina)
tender. Some traders may prefer this," said a trader.
Traders said that by using Perta, Pertamina would be partly
reverting to import practices abandoned two years ago of buying
through affiliates.
Before 1998, Pertamina secured spot oil imports almost
entirely through Perta Oil and a second affiliate, Permindo
Trading.
The affiliates were partly owned by Pertamina and by
consortiums linked to former Indonesian president Soeharto.
Buying practices were changed after Soeharto's departure from
office in an effort to boost efficiency and transparency.
Traders said that since the change in 1998, Perta, which
became a wholly-owned affiliate in late 1998, has sold barrels to
Pertamina on a sporadic spot basis, while Permindo had shut down.