Jakarta – Indonesia state oil and gas company PT Pertamina plans to import more crude oil as global price tumble, Ego Syahrial, acting director of oil and gas, told reporters on Monday.
Oil prices plummeted around 30% on Monday after Saudi Arabia started a price war, even as the spread of the coronavirus erodes global demand growth.
"With oil prices slumped, we should enjoy it. Pertamina will buy as much as possible, we have tanks to fill," Syahrial said, without disclosing the amount Pertamina plans to buy.
Indonesia's energy ministry has given Pertamina a crude import quota of 50 million barrels this year, around 30 million barrels lower than requested.
Pertamina imported 87 million barrels of crude last year, company data showed.
The price drop will not impact Pertamina's drilling and investment activities, said Upstream Director Dharmawan Samsu.
He said Pertamina's production costs stood between $9-$11 per barrel for onshore operations, while some of its offshore fields' production costs stood around $20 per barrel.
Pertamina plans to spend $7.8 billion in investment this year, up 84% from a year earlier, to boost upstream output.
[Reporting by Wilda Asmarini Writing by Fransiska Nangoy; Editing by Raju Gopalakrishnan.]