Indonesia Pertamina Seeks to Buy Domestic Crude to Cut Dollar Needs, Government Official Says
September 10 2015 - 3:36AM
Dow Jones News
By I Made Sentana and Deden Sudrajat
JAKARTA--Indonesia's Pertamina is seeking to buy around 200,000
barrels of crude oil a day from producers in the country, which is
expected to reduce the state-owned oil company's dollar needs by
$3.8 billion a year, a government official said Thursday.
I Gusti Nyoman Wiratmaja Puja, the Energy and Mineral Resource
Ministry's oil and gas director general, said Pertamina was in
talks with 14 crude producers, but he declined to name them.
"The 14 companies have agreed for such plan, but they still need
approval from their headquarters (overseas)," Mr. Puja said.
Pertamina currently imports around 400,000 b/d of crude to be
processed into fuel at its six refineries.
Meanwhile, producers including Chevron Corp. (CVX), Exxon Mobil
Corp. (XOM), Total SA (TOT) and PetroChina Co. (PTR) export around
398,000 b/d in total.
Mr. Puja said although the crude prices Pertamina would pay
domestically will follow international prices, the company would
make payments in local currency at the prevailing dollar-rupiah
exchange rate.
Bank Indonesia in July issued a regulation requiring all
transactions within the country be settled in rupiah to reduce
dollar demand after the local currency fell to its lowest levels
since the 1998 Asian financial crisis.
Pertamina is the single largest dollar buyer in the Indonesian
foreign-exchange market.
Write to I Made Sentana at i-made.sentana@wsj.com
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(END) Dow Jones Newswires
September 10, 2015 03:21 ET (07:21 GMT)
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