Indonesia: Nine companies to sell export quota of crude oil to Pertamina

State-owned oil and gas holding company Pertamina has made agreements with nine private oil companies to buy their export quotas of crude oil production to help reduce crude oil imports.

“I just received a report from Pertamina about its agreements with nine private oil companies,”
Energy and Mineral Resources Ministry Oil and Gas Director General Djoko Siswanto said in Jakarta on Tuesday.

He failed to mention the companies and the volume of oil involved.

Pertamina spokesperson Adiatma Sardjito confirmed the deals, but said the volume of crude oil involved was not significant.

“We are in process of sealing a deal with one company that involves a large volume,” he told the media on Tuesday.

Adiatma did not mention what currency the payments would be in, while Djoko said it was not the government that would decide on the currency.

Adiatma said the nine companies would start supplying crude oil to Pertamina next year because Pertamina’s integrated supply chain, a unit in charge of crude oil procurements, counted crude purchases per annum.

The agreements are in line with Ministerial Regulation No.42/2018 issued in September, which stipulates that Pertamina must purchase domestic crude. The regulation also requires private oil firms to offer their oil production to Pertamina. (bbn)