Pertamina to import fuel as it overhauls facility

Pertamina to import fuel as it overhauls facility

The Jakarta Post, Jakarta

State oil and gas firm Pertamina plans to buy fuel from the
international spot market as well as carrying out a crude
processing deal with Singapore to avoid disruption in fuel
supplies at home when Pertamina's Balongan refinery undergoes a
two-month maintenance program starting in September.

"Our duty is how to maintain the fuel supply at a safe level
during the September-October period so that it won't disrupt
economic and investment activities," Pertamina president Baihaki
Hakim told reporters over the weekend.

Baihaki said the refinery's production level was quite
significant as it supplied fuel for Jakarta and West Java. Any
fuel disruption in those areas would have serious economic and
social consequences.

"Thus, maintenance of the Balongan refinery is a sensitive
issue compared to other refineries," Baihaki said.

During the maintenance process, Pertamina will buy crude oil
and process it in Singapore. In addition, Pertamina will also buy
fuel on the spot market.

Located in Indramayu regency, West Java, Balongan refinery
produces between 100,000 and 125,000 barrels per day of fuel. It
makes up 10 percent of Pertamina's total production. The firm
produces some one million barrels per day from its seven
refineries.

However, Pertamina's production only covers 80 percent of the
country's total fuel consumption. The remaining 20 percent is
bought from Kuwait, Saudi Arabia and the spot market.

The latest data from the city administration shows that
consumption of diesel fuel in Jakarta is 2.2 million kiloliters
annually, followed by premium gasoline at 1.9 million kiloliters
a year, and kerosene at 1.5 million kiloliters a year.

Sixty percent of the Balongan production goes to Jakarta which
consists of premium gas, kerosene and diesel fuel.