OPERATIONS

Pertamina considers delay in refinery shutdown

Indonesia's state oil firm Pertamina is considering a delay in its proposed shut down of the 125,000-barrel-a-day Balongan refinery. Originally slated for early August the company is now looking at August 15 to kick off the 70-day refinery turnaround.

The company said the turnaround has been delayed so it can prioritise an imminent partial turnaround at another refinery.

The delay also means Pertamina will be forced to review the need for its crude processing deal with Singapore Petroleum Co. (SPC) in August. The deal with SPC was planned to cover the oil product shortfall due to the refinery shutdown and was for the processing of 62,500bopd of Minas crude and 30,000bopd of Iranian light crude for at least August and September, and now possibly longer.

Currently, Pertamina has bought an additional 500,000-600,000 barrels of gasoline to supplement its monthly tender and term purchases.

Besides gasoline, Pertamina has not been buying more middle distillates or fuel oil to boost what it has already purchased via the August import tender and term purchases.

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