Citing the response from the contractors, Djoko said firstly, some oil contractors had already had sales purchase agreements with foreign firms and secondly, Pertamina had already lost tender in crude oil purchase. Djoko explained that the possible implementation of Jokowi’s order was that Pertamina would be given priority in any tenders of domestic oil production or it had to wait for expiration of all sales purchase agreements made between the private contractors and foreign buyers.
Total oil lifting is around 775,000 barrels of oil per day (bopd), 550,000 of which is used by Pertamina. Therefore, under the President’s order, Pertamina is required to buy the remaining 220,000 bopd from the contractors. United States oil giant ExxonMobil vice president public and government affairs Erwin Maryoto said the company was open to do business with any firm, including Pertamina, as long as it was in accordance with the market mechanism. (bbn)
