Pertamina Indonesia is looking for more than 1.6 million bbls of gasoil in October, according to sources

Three sources familiar with the matter confirmed on Tuesday that Pertamina, Indonesia's gasoil producer, is looking to procure more than 1.6 million barrels at a high sulphur level of 2500ppm for delivery during the second half of October.

The state-owned energy giant is looking to purchase - through its trading arm- six cargoes ranging in volume from 200,000 barrels to 500,000 via an auction that will close on October 9, with bids valid until Oct. 11.

The cargoes are: two 200,000 barrels to be loaded on Oct. 14-16, and Oct. 23-25, from Singapore or Malaysia; one 300,000 barrel cargo to be delivered to Tuban on Oct. 21-23, and one 200,000 to 500,000 barrel cargo to Tuban on Oct. 29-30, and two 200,000 barrels to deliver to Tanjung Uban, and Pulau Laut, on Oct. 18-20, and Oct. 29-31.

Two sources claim that Pertamina’s trading arm purchased sulphur-gasoil cargoes with 2500ppm or 50ppm two weeks ago, for delivery in the first half of October, at a premium of $2-3 per barrel. They also said that this activity was linked to potential production problems that could last into November.

The company didn't immediately respond to our request for a comment.

The Balikpapan refinery has completed the renovation work on HCU A and B. Pertamina's spokesperson said earlier that both units were in the stage of commissioning and starting up after the overhaul. (Reporting and editing by Louise Heavens; Additional reporting by Fransiska Naangoy)

(source: Reuters)