Indonesia's Pertamina Finds 3 New Oil and Gas Reserves in 1Q of 2019
Exploration of Pertamina - Photo by Pertamina

JAKARTA (TheInsiderStories)Indonesian President Joko Widodo instructed PT Pertamina to buy all domestic oil production at market prices in order to maintain current account deficit (CAD) and stabilise rupiah against US dollar.

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.

Energy and Mineral Resources Minister Ignasius Jonan said on Wednesday (15/08) said 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 Joko Widodo instructed Pertamina to buy contractors’ oil production share at market prices in order to maintain CAD thus make rupiah stable against the US dollar.

This policy will reduce imported oil that brings significant pressure to trade deficit. Surprise trade deficit US$2 billion in July driven by oil & gas deficit at $1.19 billion pushed by $81.2 million in oil import.

Meanwhile, Pertamina’s Acting President Director Nicke Widyawati said the company could reduce crude oil imports by 200,000 BOPD by purchasing contractors’ oil share. She said, that Pertamina would join oil purchase auction and ask for the first right to match.

According to the Upstream Oil and Gas Regulatory Special Task Force data, Exxon Mobil 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 (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).