ID :
12849
Thu, 07/17/2008 - 19:22
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http://m.oananews.org//node/12849
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PERTAMINA READY "TO DISCLOSE EVERYTHING" TO HOUSE INQUIRY COMMITTEE
Jakarta, July 17 (ANTARA) - State-owned oil and gas company Pertamina said it was ready "to disclose everything" with regard to the country's crude and fuel oil imports to the Fuel oil Price Hike Inquiry Committee of the House of Representatives (DPR), the company's chief, Ari Soemarno, said.
Speaking in a public discussion organized by the Energy and Mineral Resources Journalist Forum (FWESDM) here on Thursday, Soemarno said Pertamina was currently transforming itself into a more efficient business entity.
"It includes efficiency in the procurement of crude and fuel oils," he said adding that Indonesia still needed to import crude because its own crude production could not feed domestic refineries.
He said it was more efficient to export some of Indonesia's crude production so that domestic refineries would only process certain types of imported crude.
Soemarno said imports were needed because production and capacity of refineries at home were not able to meet the demand for domestic consumption which continued to increase.
Oil refineries at home were only able to produce 855,000 barrels per day of its full capacity of 1.028 million barrel of oil and other products per day.
"For fuel oils, they only produce 652,000 barrels per day or only about 75 percent of their design capacity while the need at home reaches one million barrels per day. This means we still need to import about 300,000-350,000 barrels per day," the Pertamina president director said.
Soemarno said crude was imported through traders because only a small number of oil producers such as Kuwait and Saudi Arabia were willing to serve direct purchases.
Most oil producers sold their crude through their own traders or through independent ones.
The same was true of oil companies which refused to directly contact with buyers but through traders, he added.
"So, it is a common practice that crude and fuel oil transactions are carried out through traders. This procurement process constitutes a transparent market," he said.
He said Pertamina always procured crude and fuel oils through tenders.
Speaking in a public discussion organized by the Energy and Mineral Resources Journalist Forum (FWESDM) here on Thursday, Soemarno said Pertamina was currently transforming itself into a more efficient business entity.
"It includes efficiency in the procurement of crude and fuel oils," he said adding that Indonesia still needed to import crude because its own crude production could not feed domestic refineries.
He said it was more efficient to export some of Indonesia's crude production so that domestic refineries would only process certain types of imported crude.
Soemarno said imports were needed because production and capacity of refineries at home were not able to meet the demand for domestic consumption which continued to increase.
Oil refineries at home were only able to produce 855,000 barrels per day of its full capacity of 1.028 million barrel of oil and other products per day.
"For fuel oils, they only produce 652,000 barrels per day or only about 75 percent of their design capacity while the need at home reaches one million barrels per day. This means we still need to import about 300,000-350,000 barrels per day," the Pertamina president director said.
Soemarno said crude was imported through traders because only a small number of oil producers such as Kuwait and Saudi Arabia were willing to serve direct purchases.
Most oil producers sold their crude through their own traders or through independent ones.
The same was true of oil companies which refused to directly contact with buyers but through traders, he added.
"So, it is a common practice that crude and fuel oil transactions are carried out through traders. This procurement process constitutes a transparent market," he said.
He said Pertamina always procured crude and fuel oils through tenders.
