Indonesia’s Pertamina seeks more 1.6 mln bbls gasoil for Oct, sources say

October 11, 2024

Indonesia’s Pertamina is seeking for more 1.6 million barrels of high sulphur 2500ppm gasoil for delivery in second-half October via a spot procurement tender, three sources with knowledge of the matter said on Tuesday.

The state-owned energy major is hoping to buy – via its trading arm – a total of six cargoes with volumes from 200,000 to 500,000 barrels via a tender that closes on Oct. 9, with offers to have the validity up to Oct. 11.

Two 200,000-barrel cargoes should be loading on Oct. 14-16 and Oct. 23-25 from Singapore or Malaysia, one 300,000-barrel cargo for Oct. 21-23 delivery to Tuban, one 200,000-500,000 barrel cargo for Oct. 29-31 delivery to Tuban and two 200,000 barrel cargoes for delivery to Tanjung Uban and Pulau Laut on Oct. 18-20 and Oct 29-31.

Pertamina’s trading arm bought some 2500ppm and 50ppm sulphur gasoil cargoes two weeks ago for first-half October delivery at premiums of $2-3 a barrel, two of the sources said, adding that refiner’s procurement activity is linked to possible production woes that could extend into November.

The company did not immediately respond to a Reuters request for comment.

The Balikpapan refinery “has completed the revamp work of HCU A and HCU B. Both units are in the commissioning and start up stage after the revamp”, said a Pertamina refinery spokesperson earlier.

Source: Reuters reported by Trixie Yap, additional reporting by Fransiska Nangoy and edited by Louise Heavens

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