Indonesian state-controlled refiner Pertamina has included Russian oil grades in its tender lists for September crude purchases, marking a significant shift after years of abstaining from Russian oil since the onset of the Russian-Ukraine conflict in 2022. Notably, Indonesia has not joined Western sanctions against Russia.
Pertamina’s last acquisition of Russian oil, specifically ESPO Blend and Sokol, occurred over a decade ago. The current geopolitical landscape has seen countries like China, India, and Turkey emerge as the primary buyers of Russian oil due to Western sanctions, including an EU embargo and a price cap mechanism.
For the upcoming September 15-17 delivery to its Cilacap refinery, Pertamina requested Russian Urals oil alongside sour grades such as Kirkuk, Jubilee, and Al Shakheen. Additionally, for September 18-20, the company sought Sokol oil among sweet grades like Azeri BTC and Qua Iboe. The Sokol oil is to be supplied under CFR (Cost and Freight) or DAP (Delivered at Place) terms.
While tenders for these purchases closed recently, the results remain pending. Sources indicate that Pertamina may only proceed with Russian oil purchases if they comply with the price cap regulations, which permit Western shippers and insurers to engage in Russian oil trading as long as the sale price is below $60 per barrel.
A spokesperson for Pertamina emphasized that any crude oil purchases would align with refinery specifications and relevant regulations, stating, “If we purchase crude oil from Russia, it will be done under the price cap mechanism.”