Indonesia Cuts Oil Imports

Indonesia Cuts Oil ImportsIndonesia Cuts Oil Imports

Indonesia’s PT Pertamina will get an extra 225,000 barrels per day of crude oil under a government plan requiring all contractors in the country to sell their output to the state energy firm to curb imports and support the rupiah.  Indonesia, the biggest oil producer in Southeast Asia, currently produces around 775,000 bpd of crude oil, of which 550,000 bpd already go to Pertamina, including its own oil output. The rest is exported, Bloomberg reported. "With the new rule, the entire domestic output will go to Pertamina," oil and gas director general, Djoko Siswanto, told reporters on Wednesday.  Pertamina said the move will cut its crude imports by 60%.  The policy change is part of a government strategy to reduce the country’s swelling imports.  Barring any long-term contracts with overseas buyers, all contractors, including oil majors Exxon Mobil, Chevron and ConocoPhilips, will have to sell all their output to Pertamina.  “This is an order from the president,” Indonesian Energy Minister Ignasius Jonan said separately.

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