Reducing Imports, Pertamina Group Signs 15 Oil Purchase Agreements

JAKARTA - The Pertamina Group signed a Crude Oil and/or Condensate Sale and Purchase Agreement (PJBM) between Companies in the Upstream Subholding scope and PT Kilang Pertamina Internasional (KPI), Tuesday, January 31.

The signing of this PJBM is a form of Pertamina's synergy as a form of Subholding Upstream's commitment to provide crude oil produced to Subholding Refinery & Petrochemical refineries to carry out their responsibilities to fulfill national fuel needs. This is part of the subholding contribution in supporting PT Pertamina (Persero) as a State-Owned Enterprise (BUMN) to maintain national energy security, independence, and sovereignty.

Director of Logistics & Infrastructure of PT Pertamina, Erry Widiastono, revealed that Persero is making efforts and investments to increase oil and gas reserves to reduce imports. According to him, the challenge facing Pertamina is how to increase production and reduce fuel imports.

"Pertamina is expected to reduce dependence on imports of fuel by optimizing oil and gas production, as well as expanding petrochemicals which are currently still dependent on imports," he told the media, Wednesday, February 1.

He detailed, there were 15 PJBMs signed, namely PHE Ogan Komering, PHE Siak, PHE Kampar, PHE Raja Tempirai, PHE Corridor, PHE Jabung, PHE Kakap, PHE Jambi Merang, Pertamina Hulu Rokan, PHE Tuban East Java, PHE Tomori Sulawesi, PHE Makassar Strait, PHE Salawatin Basin, PHE Salawati, and Pertamina EP Cepu ADK.

Meanwhile, the Director of Development & Production of PT Pertamina Hulu Energi (PHE), Awang Lazuardi emphasized that the preparation of PJBM is one of the implementations of good corporate governance (GCG) aspects and the Arm's Length Principle (principle of fairness and customary business).

Furthermore, Awang explained that currently the production of crude oil and condensate produced by Subholding Upstream is distributed to Pertamina's refineries to be processed which are then enjoyed by the Indonesian people as final consumers.

"Besides being processed into fuel products, crude oil, and condensate can also be processed as raw materials for petrochemicals and their derivative products," he explained.

On the same occasion, the Main Director of PT Kilang Pertamina Internasional, Taufik Aditiyawarman said, transactions between KPI and Upstream Subholdings, especially Regions I, and IV, during 2022 reached 109 million Bbls.

"In general, transactions between KPI and Upstream Subholdings throughout 2022 are 42 percent of all domestic crude oil transactions and 49 percent are State Crude Oil and/or Condensate," concluded Taufik.