The two very large crude carriers (VLCCs) are currently under contruction and will be ready in July.
The vessels were ordered by Pertamina’s previous administration. However, when the new management came in, the vessels were seen as liabilities. According to Pertamina president, Ariffi Nawawi, “It will be cheaper for the company to charter tankers than to own them. We don’t want to have a project which gives negative returns.”
“It costs US$20,000 a day to rent a supertanker, whereas the cost of Pertamina operating its own ship would amount to US$45,000. The tender for the sale of the 260,000-ton VLCCs will be opened later this month,” added Ariffi.
The move has been criticised by Indonesian oil industry observer Bachrawi Sanusi who said, “Pertamina [should] reconsider the planned sale. The company would be able to operate more efficiently with its own transportation facilities.”
The vessels will have cost the Indonesian firm US$131 million in total but Pertamina is confident it can sell them off for 30%-40% more due to the high price of steel worldwide. Ariffi’s administration has already cut or postponed several business plans mooted by the previous management in an effort to cut costs and boost profits.
