State oil and gas company PT Pertamina is reported to have processed at its refinery 69.1 million barrels of crude oil from domestic producers during the January-April period this year.
Pertamina processing director Chrisna Damayanto said here on Tuesday that the volume of domestic crude was 2.21 percent higher than the company`s initial target of 67.6 million barrels.
Pertamina refinery also processed 31.8 million barrels of imported crude oil, 10.42 percent lower than the 35.5 million barrels it had expected.
“For domestic crude, the figure was higher than expected, which is great, while the lower figures in imported crude is also good,” Chrisna noted.
From January to April 2012, he said, the refinery produced 71.63 million barrels of gasoline, comprising 21.3 million barrels of premium (leaded) type fuel, 4.4 million barrels of kerosene, 39.88 million barrels of diesel fuel, and 6.05 million barrel of jet fuel.
“Fuel production has reached 70 per cent of the crude oil intake, with the highest production being of diesel fuel,” Chrisna added.
Production of special fuels such as the Pertamax (RON 90 fuel) and Pertamax Plus (RON 92 fuel) increased by 102 percent and 94 percent, respectively, in January-April 2012.
“Overall, the processing performance during the January-April 2012 period was good,” he said.
Chrisna stated that the company continued its optimum efforts by focusing on reducing domestic crude oil processing costs and implementing crude procurement best practices.
“Through this effort, we have brought the costs down to US$ 60.38 million, which is equivalent to US$ 31.2 million worth of business impact,” he said.
Pertamina has six refineries with a total production capacity of 1.031 million barrels a day.
The company also plans to build two new refineries, which are expected to process 300,000 barrels a day by 2018.
Energy observer from ReforMiner Institute, Pri Agung Rakhmanto, said the government should build a new refinery to enhance national energy security.
“So far, the government has not been serious about building refineries,” he added.
“There are two options. The government can build its own refinery by using the fund it had previously allocated for subsidised fuel or by providing fiscal and non-fiscal incentives to investors who are exploring cooperation with Pertamina,” Pri Agung said.
He noted that the last refinery built in Indonesia was in 1994, which was located in Balongan, West Java.
The rate of fuel consumption grew at an average of 6-8 percent per year. Currently, national fuel consumption is close to 1.1 million barrels per day.
Meanwhile, oil production capacity is only 650,000 barrels a day, which means there is a 40 percent deficit, equivalent to 450,000 barrels a day.
“As a result, imported fuel is eroding the state`s foreign exchange by US$ 26.5 billion per year,” Pri Agung said.
Source : Antara : (26.06.12)