Pertamina eyes new refining deal

JAKARTA, November 30, 2016 – Pertamina has a new processing deal for its Iraqi crude imports in the works, a company official said on Wednesday. The results of the tender for the arrangement are expected shortly.

The processing tender is for the supply of 1 million to 2 million barrels per month for the 12 months beginning in January. Speaking on the condition of anonymity, a Pertamina official said Shell was vying for the contract.

In March, Pertamina said it was eyeing Indian refiners for the job, but in June picked Shell to process Iraqi crude at a facility in Singapore. Some 290,000 barrels are expected to be come from the ExxonMobil-operated West Qurna-1 field, in which Pertamina holds a 10% stake, with the remaining volume to be sourced from other fields.

In related news, reports appeared earlier this week that Shell was considering the sale of its Iraq assets, which include an operatorship stake in the giant Majnoon field and a shareholding in the aforementioned West Qurna-1 field. The report prompted a rare reaction from the company, saying it was committed “to working with our partners in Iraq to redevelop the country’s energy infrastructure.” Shell added that it would emphasise its “2017 growth strategy at Majnoon, the Basrah Gas Company [BGC] and through the progression of the Nebras [petrochemicals] project.”

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