RI allocates 240,000 bpd of crude in March

RI allocates 240,000 bpd of crude in March

SINGAPORE (Reuter): Indonesia's state-owned oil company Pertamina has allocated between 230,000 and 240,000 barrels per day (bpd) of crude oil to its marketing affiliates in March against 210,000 bpd in February, affiliate sources said yesterday.

The March volume is about the same amount allocated in January at 230,000 bpd.

March allocations of key export crudes like Minas is about 70,000 bpd, while Duri is around 45,000-50,000 bpd, they said.

"It's quite surprising that Pertamina has allocated more this time," one source said. "But the increase could be linked to scheduled refinery shutdowns in March."

A 27,500-bpd hydrocracker at Pertamina's Balikpapan refinery is scheduled for a one-month shutdown in March.

Sources said one of the Japanese affiliates, Pacific Petroleum and Trading Co Ltd was allocated about 86,700 bpd in March, compared with around 76,000 bpd in February.

Pacific Petroleum was formed after the merger of Japan Indonesia Oil and Far East Oil in Jan. 1 1996.

Another affiliate, Perta, was allocated about 13,000 bpd of Minas and 12,000 bpd of Duri. Perta received about 10,000 bpd of Minas and 12,000 bpd of Duri in February.

Japanese trader Mitsubishi Oil was allocated its full requirements of 17,000 bpd, while Itochu was allocated about 15,000 bpd.

Meanwhile, Pertamina said in Jakarta it is mulling a new 60,000 barrel per day (bpd) residue cracking unit in Sumatra.

"We are currently studying to build a residue cracking unit with capacity of around 60,000 bpd to produce gasoline. We feel the plant is very important to meet future fuel demand," Pertamina's processing director Godfried Atihuta said.

"I can't tell when the residue plant will start construction, because it is still being studied. I think the cost for the plant is around $500 million," he told reporters.

The cracker would be built in Dumai near an existing 120,000 bpd refinery in central Sumatra.

He said it would reduce Pertamina's Low Sulphur Waxy Residue (LSWR) exports, much of which go to Japan for use in electric power generation.

Pertamina has allocated 3.5 million barrels of LSWR for February loading, traders in Singapore said on January 25. The allocation was about 600,000 to 700,000 barrels less than the January allocation of 4.1 to 4.2 million barrels.

"The residue plant will process residue into gasoline and we will get more value added," he said.