Arcandra: Pertamina's Contribution as National NOC Not Bigger Yet Than NOC Country

INDUSTRY.co.id - Jakarta - The government continues to push PT Pertamina (Persero) to be stronger from the upstream side. Deputy Minister of Energy and Mineral Resources (EMR), Arcandra Tahar, said that Pertamina's oil production as National Oil Company (NOC) is now national, not as big as other countries' NOCs.

"NOC production in the world is generally more than 50% of total national production, for example, Petrobras is produced in 80% of Brazil's national production, Saudi Aramco about 99%, Petronas about 58% .The oil production of Pertamina to the national is only 20% Pertamina must be stronger, because the energy resistance starts from the supply," explained Arcandra Tahar in Jakarta (27/3/2018).

He said Pertamina's downstream side also played a similar role. But making the oil price high, the role of the side becomes more dominant.

"World-class oil and gas companies are always based on two legs, upstream and downstream, when high oil prices, upstream wins, oil futures, downstream is oil," said Arcandra.

Arcandra said, by building or revitalizing refineries to reduce the risk of such prices. With refineries, fuel production costs are becoming more efficient than imports.

He added that the need for BBM Indonesia is around 1.7 million barrels per day (bpd) and the production of a national refinery is around 800 thousand per day. Even to meet the needs of fuel (processing oil) national imports are still needed around 900 thousand bpd.

"The spread between fuel and refinery imports is 5%, which is calculated from RON 92 fuel prices in the range of US $ 72-74 per barrel, spreading about US $ 3.5 per barrel, $ 3 million, or about US $ 1 billion died because of its efficiency," said Arcandra.