Traders say Indonesia may cut crude exports

Traders say Indonesia may cut crude exports

SINGAPORE (Reuters): Initial estimates of Indonesia's crude export program for July indicate that state oil company Pertamina has cut the July allocations of its main Minas, Cinta and Widuri crudes compared to June, traders said yesterday.

Traders said they calculated that total Minas allocations for July will be around 20,000 barrels-per-day (bpd), half the June level.

Allocations for Widuri and Cinta were calculated at a combined 10,000 bpd, they said. This compared with 15,000 bpd of Widuri and 7,000 bpd for Cinta allocated in June, traders said.

Traders said they were still trying to get official confirmation of the allocations.

They also said that they were waiting for information on the July allocations for Duri crude.

The allocations will be distributed to term customers in line with normal practice.

However, Pertamina does not plan to allocate any crude to its four affiliates, following the company's earlier comment that it would review dealings with affiliates.

The reduced allocations for July were the result of a lower entitlement of equity crude for Pertamina because of the lower crude price.

Most crude fields in Indonesia are operated by foreign oil companies, which are paid in crude for their investment based on the monthly value of oil prices.