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chartered SCI’s Desh Ujaala VLCC for six months from May-June at a day rate of about $22,100. e contract has two three-month optional extensions. Leading shipbroker Clarkson has noted that the current day rate for a one-year charter is $34,000.
One potential reason for the lack of local interest is that the tender stipulated that IOC needed a 10-year old VLCC that had been t- ted with exhaust gas cleaning systems in order to comply with the International Maritime Organ- ization’s (IMO) new emissions rule, which will come into e ect on January 1, 2020.
The Hindu reported that of the seven VLCCs run by Indian shipowners, only SCI’s Desh Vibhor was less than 10 years old and it had already been chartered. is le local shipowners needing to buy a second-hand VLCC and t it with scrubbers.
“Globally, most yards are booked fully for installing scrubbers that were ordered more than a year ago. us, ordering scrubbers and getting a yard slot to t them by January next yearhasbecomeimpossible,” eHinduquoted an unnamed industry o cial as saying.
SOUTHEAST ASIA
Pertamina in talks to buy local oil production
PROJECTS & COMPANIES
INDONESIA’S state-owned Pertamina may buy 109,000 barrels per day (bpd) of crude from domestic oil eld contractors in the second half of this year, Reuters reported on July 10.
is will include purchases from Chevron’s Rokan block, the newswire quoted company spokeswomen Fajriyah Usman as saying. She added that the volume could change depending on talks with sellers.
Pertamina bought 116,900 bpd crude oil from 37 contractors in the rst half of 2019, an 800% jump from 2018’s full-year average of 12,800 bpd, Fajriyah said in separate state- ment. “By prioritising domestic crude produc- tion, we’ve secured supply for our re neries,” she said.
e government introduced a rule in 2018 requiring all contractors to sell their output to the state-owned oil and gas major. Jakarta wanted to increase Pertamina’s access to local oil production in a bid to reduce imports des- tined for the company’s re neries. e rule exempted contractors’ existing long-term export agreements.
Fajriyah said the change had already allowed Pertamina to halt imports of heavy, super heavy, light and medium crude. How much relief it can deliver in the long run is debatable, however.
e country’s crude and condensate produc- tion slipped 3.6% year on year in 2018 to 772,000 bpd, according to the BP Statistical Review of World Energy. Demand, meanwhile, expanded by 5.2% y/y to 1.76mn bpd.
While the country is hoping greater explora- tion e orts can lead to discoveries big enough to halt the decline, recent results have been limited.
A unit of the state-owned company, Pertam- ina Hulu Energi (PHE), said on July 9 that it was carrying out an 1,800-km long 2D seismic survey in the Malacca Strait, covering the East Aceh and North Aceh districts. e accompany expects to wrap up the survey this month, with processing, interpretation and modelling to follow.
Pertamina Hulu Energi (PHE) president director Meidawati said: “ is seismic survey is an important step for PHE’s subsidiary, speci - cally PHE NSO, which continues to innovate and contribute to supporting national energy secu- rity. All through 2018 until mid-2019, the PHE has drilled six exploration wells.”
Pertamina said in April that PHE and another subsidiary Bumi Siak Pusako-Pertamina Hulu had found a new oil and gas deposit in the rst quarter of the year. e rms identi ed a num- ber of basement plays in the area surrounding the Benewangi Well #J-01 in Riau Province, with a projected oil resource of 500mn barrels.
Week 28 17•July•2019 w w w . N E W S B A S E . c o m P5
