Kartini L Makmur, Robert Sidauruk
Starting this Friday, the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) will no longer organize tenders to select traders to sell state-owned crude oil and condensate.
This policy was confirmed by Jero Wacik, Minister of Energy and Mineral Resource (ESDM), who says that this measure has been taken to avoid cases similar to the Rubi Rubiandini incident.
“It is hoped that no more similar cases will occur,” the Minister said during a meeting with Commission VII at the House of Representatives in Jakarta on Wednesday.
All state-owned crude oil and condensate will be transferred to Pertamina. Afterwards, Pertamina will directly sell it to oil companies by exchanging it for different types of crude oil according to Pertamina’s needs.
This exchange method is being adopted as there are several types of crude oil and condensate that cannot be distilled by Pertamina’s refineries and consequently have to be sold to interested oil companies through a tender process.
On the same occasion, Head of SKK Migas, Johanes Widjonarko, said that this policy will maximize all oil resources in Indonesia.
Johanes suggests that in the future SKK Migas should only focus in finding and providing crude oil and condensate without being involved in the management of oil production.
“To implement the policy, SKK Migas will enter a Memory of Understanding (MoU) with Pertamina in regard to the plan for the utilization scheme of crude oil and condensate,” informed Johanes.
As a side note, Indonesia is currently producing 800,000 barrel of oil per day of which the State is entitled to 85% and the remaining 15% to contractors.
The volume of crude oil and condensate that cannot be distilled in refineries owned by Pertamina is between 10% - 15% of total oil production.
(hot/kc)
Kartini L Makmur, Robert Sidauruk
Starting this Friday, the Special Works Unit for Upstream Oil and Gas Activities (SKK Migas) will no longer organize tenders to select traders to sell state-owned crude oil and condensate.
This policy was confirmed by Jero Wacik, Minister of Energy and Mineral Resource (ESDM), who says that this measure has been taken to avoid cases similar to the Rubi Rubiandini incident.
“It is hoped that no more similar cases will occur,” the Minister said during a meeting with Commission VII at the House of Representatives in Jakarta on Wednesday.
All state-owned crude oil and condensate will be transferred to Pertamina. Afterwards, Pertamina will directly sell it to oil companies by exchanging it for different types of crude oil according to Pertamina’s needs.
This exchange method is being adopted as there are several types of crude oil and condensate that cannot be distilled by Pertamina’s refineries and consequently have to be sold to interested oil companies through a tender process.
On the same occasion, Head of SKK Migas, Johanes Widjonarko, said that this policy will maximize all oil resources in Indonesia.
Johanes suggests that in the future SKK Migas should only focus in finding and providing crude oil and condensate without being involved in the management of oil production.
“To implement the policy, SKK Migas will enter a Memory of Understanding (MoU) with Pertamina in regard to the plan for the utilization scheme of crude oil and condensate,” informed Johanes.
As a side note, Indonesia is currently producing 800,000 barrel of oil per day of which the State is entitled to 85% and the remaining 15% to contractors.
The volume of crude oil and condensate that cannot be distilled in refineries owned by Pertamina is between 10% - 15% of total oil production.
(hot/kc)