JAKARTA (TheInsiderStories) – Foreign oil producer PT Chevron Pacific Indonesia and PT ExxonMobil Indonesia would discuss with Indonesian government on the new policy requiring the mandatory sale of crude oil to state-owned energy producer PT Pertamina.
Minister Energy and Mineral Resources (MEMR) Ignatius Jonan informed at the limited meeting on Tuesday (14/08), President Joko Widodo has instructed Pertamina to buy all domestic oil production at market prices in order to maintain current account deficit (CAD) and stabilise rupiah against US dollar.
Based on government data, currently Indonesia produces around 740,000 to 800,000 barrel oil per day (BOPD) divided to the government’s share and oil & gas contractors’ share according to the production sharing contracts (PSC). Pertamina currently only instructed to buy the government’s share, while the contractors export its oil.
Jonan said on Wednesday (15/8) that oil & gas contractors currently export around 200,000 to 300,000 BOPD, while Pertamina imports around 300,000 to 400,000 BOPD.
He added, President Widodo also instructed Pertamina to buy contractors’ oil production share at market prices in order to maintain CAD thus make rupiah stable against the US dollar. The minister said, this policy will reduce imported oil that brings significant pressure to trade deficit.
As we know, Statistic Indonesia has announced Indonesia trade deficit widen to US$2 billion in July driven by oil and gas deficit at $1.19 billion pushed by $81.2 million in oil import.
According to Pertamina’s Acting President Director Nicke Widyawati the company could reduce crude oil imports by 200,000 BOPD if could purchase the contractors’ oil share. She said that Pertamina would join oil purchase auction and ask for the first right to match.
Based on the Upstream Oil and Gas Regulatory Special Task Force data, ExxonMobil Cepu Limited is the biggest oil producer in Indonesia with a production of 209,922 barrel oil per day in the first semester of this year.
It followed by Chevron Pacific Indonesia with production 207,148 BOPD, Pertamina EP 70,031 BOPD, Pertamina Hulu Mahakam 46,376 BOPD, CNOOC 30,876 BOPD, Pertamina Hulu Energi ONWJ 30,489 BOPD, Petronas Carigali (Ketapang) Ltd 15,698 BOPD, Chevron Indonesia Company 14,410 BOPD, and PetroChina International Jabung Ltd 14,302 BOPD.