Pertamina to end Shell deal

Sat, 31 Mar 2001 | Source: DJ

SINGAPORE (Dow Jones): Indonesia's national oil company, Pertamina, will halt an existing crude processing deal with Shell Eastern Petroleum Ltd.'s Bukom refinery in Singapore for April, a Pertamina spokesman told Dow Jones Newswires Friday.

The decision to halt the deal, under which 90,000 barrels a day of crude was processed in March, was taken because of poor economics and the restart of Pertamina's 125,000 b/d Balongan refinery, the spokesman said.

While Pertamina may "have stopped the CPD deal for now (April) because it is not economical," the Pertamina spokesman maintained that "it is still possible to renew the contract."

A Shell spokeswoman said,"we decline to comment for now."

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