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Indonesia's Pertamina awards first crude supply contracts under new system
[JAKARTA] Indonesia's state oil firm Pertamina has awarded several crude supply contracts for deliveries from now to mid-year, a company director said, in the first tender since the government overhauled the country's oil procurement system.
Pertamina took over crude purchases from its trading arm Petral for deliveries from April onwards, part of an industry shake-up in President Joko Widodo's anti-corruption campaign to restore investor confidence.
Pertamina's Integrated Supply Chain (ISC) division, which now handles the petroleum buy tenders, has awarded a contract to Swiss-based trader Vitol to supply Indonesia with 1.9 million barrels of crude for April, Pertamina Marketing Director Ahmad Bambang told reporters.
Pertamina has also awarded a contract to Azeri state energy firm SOCAR to supply 1.2 million barrels of crude for April, Bambang said.
Angolan state energy firm Sonangol also won a contract to supply Indonesia with 950,000 barrels of crude per month from February to June, Bambang said, although it's not clear if the crude will all be Angolan production.
Indonesia typically buys West African sweet crude for its refineries.
Pertamina is still seeking imports of 9 million barrels per month (bbls/mth) of RON88 gasoline, 1.5 million bbls/mth of RON92 gasoline and 5 million bbls/mth of diesel, Bambang said.
For the year, Pertamina has said it expects crude oil imports to fall on an average daily basis, while imports of gasoline are likely to rise.
Pertamina has said it is planning for imports of around 306,460 barrels of crude per day (bpd) this year, down from 333,540 bpd in 2014. Imports of RON88 are likely to rise to 128 million barrels this year, up from 115 million barrels in 2014.
In January, Pertamina said Indonesia's demand for its RON88 fuel sold as "Premium" could exceed 30 million kilolitres (190 million barrels) in 2015, compared with 29.6 million kl in 2014.
Demand for RON92 sold as "Pertamax" could more than triple to 2.5 million kl in 2015, up from 800,000 kl in 2014, it said.