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 (ESDM) Ignatius Jonan informed at the limited meeting on Tuesday (Aug 14), 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.
