Indonesian state-controlled refiner Pertamina has added Russian oil grades to its tender lists to buy September crude, three traders said on Monday, according to Reuters.
Pertamina has not purchased Russian oil for years. Pertamina last purchased ESPO Blend and Sokol oil from Russia more than 10 years ago, LSEG data shows.
Western sanctions against the Russian energy sector, including an EU embargo on its oil and a price cap mechanism, have made China, India and Turkey the main buyers of Russian oil. Pertamina asked for Russian Urals oil along with sour grades Kirkuk, Jubilee, Al Shakheen and others for Sept. 15-17 arrival at its Cilacap refinery. Pertamina also asked for Sokol oil among sweet oil grades such as Azeri BTC, El Sharara, Qua Iboe and others for arrival at Cilacap over Sept. 18-20. The Sokol is to be supplied under CFR or delivered at port (DAP) terms only, according to the tender.
One of the tenders closed last week and another on Monday, the sources said. The results have yet to be announced. One of the sources familiar with Pertamina's plans said the company may only buy Russian oil if it was sold under the price cap regulation. The cap allows Western shippers and insurers to participate in Russian oil trading provided that the oil is sold for less than $60 a barrel.
A spokesperson for Pertamina's refinery unit said on Tuesday the firm would purchase crude oil that was suitable with its refinery specifications, while complying with all relevant regulations. "If we purchase crude oil from Russia, it will be done under price cap mechanism," spokesperson Hermansyah Nasroen said.