Pertamina seeks overseas refiner for Malaysian, Algerian crude

Indonesia's Pertamina is looking to process up to 1.2 million barrels per month of crude from Algeria and Malaysia at an overseas refinery, an official at the state-owned energy company said on Wednesday, in an effort to cut costs.

"We're approaching partner candidates, and it doesn't necessarily have to be with Shell again. It could be with another company," said Daniel Purba, senior vice president of Pertamina's Integrated Supply Chain unit.

Pertamina inked a deal with Shell earlier this year to process around 1 million barrels per month of Iraqi crude at a Singapore refinery.

The company is now seeking a partner to process 300,000 barrels of Algerian crude and up to 900,000 barrels of Malaysian crude each month, which is currently being shipped to Indonesia for refining, Purba said.

"Whatever brings maximum benefits to Pertamina in relation to domestic fuel supply, we will do it. The point is we want to seek value creation in the international market," he said.

Pertamina currently purchases around 6 million barrels of RON88 gasoline and 3 million barrels of RON92 gasoline per month from the international market to meet domestic demand.

The company expects to begin importing RON92 gasoline through the refining agreement with Shell in the fourth quarter of this year, Purba said, noting that the total volume of crude being processed through the Shell deal would not change.