INDONESIA - Part 3 - The Oil Exports & Imports.

Indonesia has since March 2004 become a net importer of crude oil and refined petroleum products. Indonesian exports of crude oil, condensate and petroleum products are totalling about 450,000 b/d, down from 700,000 b/d in the first quarter of 2001 and more than 830,000 b/d in 1994. Exports and imports are handled by the state-owned company PT Pertamina, acting as market agent for the state regulator BP Migas.

In recent weeks, Pertamina has been importing as much as 630,000 b/d of crude oils and refined petroleum products, up from 240,000 b/d in the first quarter of 2001. This is because the country's domestic oil consumption is exceeding 1.2m b/d.

Indonesia was in 2006 overtaken by Qatar as the world's biggest exporter of LNG. Because of a fall in gas output and rise in domestic demand, this year's LNG exports are likely to drop to 21m tons, down from 25.6m tons in 2004. Indonesia also exports gas by pipelines to Singapore and Malaysia (see Gas Market Trends). The drop in LNG exports is caused mainly by the need to supply domestic fertiliser and chemical plants as well as the local market (see DT).

It was announced recently that, among imports of crude oils, Pertamina was buying 600,000 barrels/month of Sudan's Nile Blend crude for delivery from April to June, and 1 million barrels/month of Libya's Sarir crude during the same period. The Nile Blend cargoes will be supplied by Pacific Petroleum & Trading Co., a unit of Pertamina. Sarir crude will be supplied by another unit, Pertamina Energy Trading Ltd (Petral).

These are apart from Indonesia's crude oil imports from Iran, Saudi Arabia and other Middle East countries as well as from Africa.

In addition, Pertamina has agreed to buy 600,000 barrels/month of Vietnam's Bach Ho crude from Petral, 600,000 b/month of Malaysia's Tapis crude from Petroliam Nasional Bhd., and 600,000 b/month of Brunei's Seria crude from Korea-Indonesia Petroleum Co. Pertamina had also bought these crudes for delivery in March. There are some imports from Australia.

Indonesia imports crude oil from the Middle East, Asia and Africa to allow increased exports of its better-quality varieties which fetch higher prices in global markets. Indonesia must import almost 25% of its oil products each year because its 992,745 b/d of refining capacity is not enough to meet domestic demand.

Indonesia exports most of its crude oils to Japan and South Korea. It imports most of its oil products from Singapore and the Persian Gulf.