Monday, April 19, 2010

Indonesia to Buy more Crude Oil from Saudi Arabia
Indonesia's state-owned oil and gas firm PT Pertamina plans to increase crude oil imports from Saudi Arabia by 200,000 barrels per day, President Director of the firm Karen Agustiawan said in Jacarta Monday.

The statement comes amid rising domestic energy demand as the oil production has dwindled recently due to lack of investment and aging wells.

The director said that so far the firm has imported over 125, 000 barrels of oil from Saudi Arabia and has negotiated with Saudi state giant oil firm, Saudi Aramco for the additional purchase.

"Now we are in negotiation. We expect the addition can be realized this year," Karen told reporters before a hearing with lawmakers at the parliament building here.

The additional imports will be used for supplying refineries in Cilacap of Central Java and Balongan in West Java, she said.

Head of Indonesia's oil and gas watchdog Raden Priyono told the lawmakers in the hearing that so far lifting (output) has reached 917,000 barrels per day, still below this year's target of 965,000 barrels per day.

Previously, Indonesian Coordinating Minister for Economy Hatta Rajasa has said that the country targets to produce 1 million barrels of oil per day in 2011 by boosting exploration amid the expectation of this year's higher investment target of over 15. 988 billion U.S. dollars.

Investment at oil sector last year was below the target of 13. 78 billion U.S. dollars.

Increasing oil demand and dwindling oil production has made Indonesia to become net oil importer since February 2008, and then has exited from OPEC.

Indonesia's oil production decreased to 944,000 barrels per day last year due to partly decrease of investment which stood at 12. 18 billion U.S. dollars, lower than the target of 13.78 billion U. S. dollars.

Indonesia's energy demand rises over 10 percent annually, according to the Ministry of Energy and Mineral Resources.

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