SINGAPORE: Indonesia's state oil company Pertamina [PERTM.UL] is seeking to buy crude oil for delivery in the first quarter of 2019 using currencies other than the U.S. dollar, a tender document reviewed by Reuters showed on Tuesday.
The move is seen as a tool for the government to curb a widening current account deficit caused by rising oil prices and as it tries to keep Indonesia's currency afloat. The rupiah <IDR=> hovered on Tuesday near its weakest since the Asian financial crisis and is the second worst performer among emerging Asian currencies.
The company is seeking to buy up to 5.7 million barrels of low-sulphur, or sweet, crude produced in West Africa, Malaysia, Vietnam or Brunei priced in currencies such as the Euro, Indonesian Rupiah, Chinese Yuan, Japanese Yen, Saudi Arabia Riyal.
The cargoes are for delivery to its refineries at Cilacap, Balikpapan and a ship-to-ship transfer location at Teluk Semangka between January and March 2019.
The tender closed on Monday, and offers will remain valid until Oct. 26.
Pertamina has received some offers in other currencies, while some sellers chose to stick with offers in the U.S. dollar, a source familiar with the matter said, adding that the company is still evaluating the offers. - Reuters