Thursday, July 18, 2019

Indonesia to Issue Rules on Crude Oil Sales Next Week

Posted by September 5, 2018

© Viacheslav / Adobe Stock

* Indonesia expects to issue rules next week prioritising Pertamina and other domestic refinery operators in sales of crude oil produced locally by contractors, Oil and Gas Director Djoko Siswanto said on Wednesday

* The rules require Pertamina to agree on crude purchases at prices based on business negotiations with domestic oil producers, Siswanto told reporters at a news conference

* This could affect up to 110,000 barrels per day (bpd) of oil produced by Chevron (CVX) and 27,000 bpd from Exxon Mobil (XOM) at their operations in Indonesia, he said

* The rules have been signed by the energy and mineral resources minister and are awaiting final approval by the Law and Human Rights Ministry, Siswanto said

Reporting by Wilda Asmarini; writing by Fergus Jensen

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