Government expects to issues mandatory sell crude oil for all producers to state-owned energy firm PT Pertamina next week in order to maintain current account deficit (CAD). In August, Indonesian President Joko Widodo has instructed Pertamina to buy all domestic oil production at market prices. Pertamina currently only instructed to buy the government’s share, while the contractors export its oil.
Ignasius Jonan, Minister for Energy and Mineral Resources (ESDM), has signed the ministerial decree and now awaiting final approval by Law and Human Rights ministry.
This day, Indonesia produces around 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). Jonan said that oil & gas contractors currently export around 300,000 bopd, while Pertamina imports around 400,000 bopd.
Pertamina’s President Director Nicke Widyawati admitted 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.