Indonesia to Purchase Oil from Six Foreign Countries

TEMPO.CO, Jakarta - Energy and Mineral Resource Minister Sudirman Said said there is now a speck of hope for an efficient domestic crude oilprocurement.  He revealed plans of cooperation in crude oil imports which have been agreed by six countries.

“We organized a bilateral meeting with them, its quite prospective,” Sudirman said in the hearing with the Energy Commission for the House of Parliament in the Parliament building, Senayan.

Sudirman said those six countries that are ready to supply crude oil to Indonesia are; United Arab Emirates, Saudi Arabia, Angola, Iraq, Kuwait and Azerbaijan.  Aside from oil procurement, these six countries are ready to invest in the processing sector, which is the construction of refineries.  “One of them that is already committed is Saudi Arabia, through Saudi Aramco company.

Sudirman has visited Energy Ministers from the six countries after the Organization of Petroleum Exporting Countries (OPEC) in Wina, Australia, last week.  From the meeting, Angola also said that its ready to invite PT Pertamina for exploring and exploitation of oil fields in the country.  “Angola vow to increase crude oil supplies to Indonesia, from the current supply of 1 million barrels per month,” said Sudirman.

However, Sudirman said he will first review Sonangol oil supply.  So far, supplies are still mediated by a subsidiary of Sonangol, which isChina Sonangol.  

Whereas Sudirman wants direct oil supplies without the help from a trader company.  “Sonangol Minister has yet respond when I confirmed. We are still waiting information from them,” he said.  Pertamina CEO Dwi Sutjipto appreciates the steps taken by the government that initiated the direct purchase of crude oil.  This step is considered to simplify the company's performance, while simultaneously saving the company’s finance.

“With a G-to-G outline, oil purchases will be cheaper,” said Dwi.

Kurtubi, member of the Energy Commission, asked the government to continue to cooperate in direct oil procurement, especially purchases from non-Middle East countries.  Sor far, Indonesia’s crude oil supplies are dominated by the gulf countries.

The Energy Ministry set a target to be able to rake investment in oil and gas worth Rp1.8 quadrillion for the next five years.  The government claimed it could invite investors to invest up to Rp1.2 quadrillion for the upstream oil and gas activities, and Rp600 trillion for downstream activities.

Special Unit for Oil and Gas Upstream Business Activity (SKK Migas) sets this year’s investment target of US$20 billion.  The number is lower than the target in 2014 amounting US$24 billion.

ROBBY IRFANY | ALI HIDAYAT