Indonesia seeks Russian oil for the first time in years, sources say

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Indonesian refiner Pertamina has added Russian oil grades to its tender lists to buy September crude, three traders said on Monday.

Pertamina hasn’t purchased Russian oil for years, having taken a step back since the start of Russian-Ukraine military conflict in 2022, though the state did not join western sanctions against Russia.

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 EU embargo on its oil and the price cap mechanism, have made China, India and Turkey the main buyers of Russian oil.

State-controlled 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 DAP (delivered at port) terms only, according to the tender.

One of the tenders closed last week and another on Monday, the sources said. Results have yet to be announced.

One of the sources familiar with Pertamina plans said the company may only buy Russian oil if 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 Pertamina spokesperson did not reply to a request for comment on the tenders.

Source: Reuters