| Explore Pertamina imports 200,000 bpd of Arabian crude |
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| Tuesday, 20 April 2010 10:05 | |||||||
Page 1 of 2 Chandra Asri trailer wake Aramco refinery naphtha
JAKARTA: PT Pertamina (Persero) contract to explore the long-term crude oil imports of 200,000 barrels per day (bpd) from Saudi Aramco, state-owned oil company of Saudi Arabia, and expected the deal happen this year. Pertamina President Karen Agustiawan said the company had previously been getting crude oil from the same company 125,000 bpd. With the addition of these new contracts, Pertamina hopes to import as much as 325,000 bpd of Saudi Aramco. Currently, he said, the two companies negotiating team to establish contractual agreements are expected in 2010 According to him, Pertamina is hoping a new contract that could run in the long term. To that end, the company also attempted to obtain discounts on the purchase price of such oil. "We can expect a discount, because of this long term. In fact, we try to evergreen contract till death do us part," he said yesterday. Karen said crude oil will be supplied to the refinery Balongan, West Java and Cilacap refinery in Central Java. "If the Cilacap refinery blending must be done before the new can enter." Pertamina imports crude oil of approximately 35% of the total crude oil needs to be treated that operate refineries in the country. Of the total imports, the Company Secretary Toharso said Pertamina imports 70% of long-term contracts and the rest is obtained from the spot market. Based on data from Directorate General of Oil and Gas, the biggest part of Indonesian crude oil imports are ALC (Arabian light crude), which was considered cheap. In 2007, total imports realization ALC approximately 37.48 million barrels from 116.40 million barrels. According to Planning Board, since the 1980s ALC no longer traded in the spot market. Brotherhood in OPEC enable Indonesia to get the special price of crude oil. Refinery naphtha In another part, the Association of Aromatic Olefin and Plastic Industries Indonesia (INAplas) said Chandra Asri soon finalize feasibility prauji (prefeasibility study) for construction of mega refinery naphtha (naphtha cracker). Director of Business Development and Investment INAplas Sadiman said Budi Susanto prastudi feasibility phase will focus on the petrochemicals market conditions, project financing, technology application, and conditions of the location of the refinery project. "If the process prastudi feasibility was completed, he will become a reference among investors that will join in development cooperation refinery naphtha which claimed an investment of around U.S. $ 5 billion - U.S. $ 7 billion. We expect the concept prastudi feasibility can be accomplished at least August," he told Business, yesterday. Until recently, a number of investors from the Middle East oil began to intensively explore the development cooperation refinery naphtha Chandra Asri. Aramco, the origin of crude oil producer Saudi Arabia, he said, are interested in exploring partnership began construction of refinery naphtha Chandra Asri in Cilegon, Banten, that. "Several other companies also already exists that provides a signal of cooperation but everything is still in talks," he said. According to him, some parties have stepped up to meet with management to discuss the Chandra Asri technical cooperation. "One who wants to see is a trader from Singapore and Aramco representatives from the Asia-Pacific region this week," he said. In the studies that are still very preliminary, continued Budi, Chandra Asri stressed the importance of using appropriate technology for the refinery and oil supplies are consistently of 300,000 barrels per day (bpd) of at least about 15 years. Construction of refinery naphtha, he explained, require certainty of supply of crude oil as raw material naphtha. Naphtha itself is a raw material-based petrochemical products of petroleum. Some of the naphtha-based petrochemical products including ethylene, propylene, polyethylene and polypropylene.
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