TEMPO.CO, Jakarta - State-owned gas and oil company Pertamina planned to import crude oil from the United States in 2020.
The corporate Senior Vice President of Integrated Supply Chain (ISC), Hasto Wibowo, said his firm had imported crude oils from the US for two times, and each loaded 650,000 barrels.
Meanwhile, the total import reached 6.5 million to 7 million barrels per month. “For the next year, in the term of February to June, it will amount to 950,000 barrels per month,” said Hasto in a sideline event of the 2019 Pertamina Energy Forum on Tuesday, November 26.
Hasto explained that the purchase of crude oil from the US increased from that of last year due to the maintenance of the firm’s refineries.
Indonesia’s decision to import crude oil from the US coincided with the excess supply in the advanced country. The firm would also earn benefits because of the more economical prices as there would be no shipping cost.
Hasto admitted that the shipping would take a long time up to some 45 days. Unlike from Africa at 25 days and the Middle East at 15 days.
“The main point is we seize the potential of arbitrage opportunities. So when there is a high supply, the shipping cost can be covered. And there is an opportunity for them to market it in far east Japan and southeast. We are just making the comparison,” Hasto added.
In addition to imports from the US, the country’s import of crude oil resulted from the Middle East which amounted to 3 million barrels per month, and the other four million barrels per month from Nigeria, Australia, and other states.
Pertamina also imported several products with a total volume reaching averagely 11 million barrels per month, including gasoline-branded fuel. “The demand is around 18 million barrels per month, while the domestic production is some 6-7 million barrels,” Hasto said.