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INTELLI NEWS
Pertamina, the Indonesian state-controlled refiner, is said to be on the lookout for Russian oil grades for what will be the first time in years, according to three traders speaking to Reuters. The company has added these grades to its tender lists for September crude according to a July 23 report.
Pertamina has not openly bought Russian oil for at least 10 years, and has made sure to distance itself since the onset of the Russia-Ukraine conflict in 2022. However, despite refraining from any purchases, Jakarta has not joined any of the ongoing Western sanctions against Russia.
The last purchase of Russian oil by Pertamina, specifically the ESPO Blend and Sokol grades, was over a decade ago, according to data from LSEG.
Since the invasion of Ukraine, Western sanctions, including an EU embargo on Russian oil and a price cap mechanism, have redirected Russian oil sales primarily to China, India and Turkey. Adding Indonesia, Southeast Asia’s biggest economy and a nation of over 275mn, to this list would be a major feather in Russia’s cap as Moscow tries to offload oil stocks to help fund the war.
According to Reuters, Pertamina’s latest tender requests include Russian Urals oil along with sour grades like Kirkuk, Jubilee and Al Shakheen, scheduled for arrival at its Cilacap refinery in central Java between September 15 and 17.
Additionally, it has requested Sokol oil among sweet grades such as Azeri BTC, El Sharara and Qua Iboe for arrival at the same refinery between September 18 and 20. The Sokol oil is to be supplied under CFR or delivered at port (DAP) terms, as specified in the tender.
One tender closed in the past week, and another closed on July 22, with results still pending, the same sources reportedly said.
It was further claimed that Pertamina’s plans indicated that the company might only purchase Russian oil if it adheres to the price cap regulation, which permits Western shippers and insurers to engage in Russian oil trading if the oil is sold for less than $60 per barrel.
A spokesperson for Pertamina’s refinery unit stated that the firm would purchase crude oil compatible with its refinery specifications while complying with all relevant regulations.
“If we purchase crude oil from Russia, it will be done under the price cap mechanism,” Hermansyah Nasroen told Reuters.