Pertamina considers turning to Russia for oil

Saving cost: Fuel storage tanks at a PT Pertamina facility at Tanjung Priok Port in Jakarta. The state-owned oil company is looking at cheaper crude to help the government balance energy subsidies. — Reuters

JAKARTA: State-owned oil and gas company Pertamina is considering buying Russian crude oil, which is currently cheaper than global prices, as Indonesia seeks to shield its state budget from soaring international energy prices.

Pertamina president director Nicke Widyawati said on Monday that Pertamina was in consultation with the Foreign Ministry and Bank Indonesia (BI) regarding the plan, and had approached several Russian sellers to buy crude for testing at Pertamina’s refineries. “Amid this geopolitical situation, we see an opportunity to buy oil from Russia at a good price” she told members of House of Representatives Commission VI overseeing trade, industry and investment, referring to Russia’s invasion of Ukraine.