Indonesia says Russian crude import contract ready for implementation

Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia has stated that a contract for importing Russian crude oil has already been prepared and is ready for further development.

Speaking to reporters, Lahadalia said the agreement had been worked on by the Research and Development Centre for Oil and Gas Technology (Lemigas) and the Public Service Agency (BLU) under the ministry, Caliber.Az reports, citing foreign media.

“I will try to check it technically, but what I know is that the contract has already been carried out by Lemigas (Research and Development Center for Oil and Gas Technology) and the BLU (Public Service Agency) under the ESDM Ministry,” Lahadalia noted.

Commenting on the planned import volumes, the minister indicated that there is room for expansion.

“As for the (import) volume, it can develop even more, but I will try to look at the contract again,” he added.

He further stated that they already have a G2G (government-to-government) deal between President Putin and President Prabowo, and he has also communicated with the Russian Energy Minister.

Earlier, the ministry confirmed that Indonesia intends to continue importing crude oil from Russia despite the reopening of shipping routes through the Strait of Hormuz following the easing of tensions in the Middle East.

The imports form part of a commitment to purchase 150 million barrels of Russian oil in stages through the end of 2026, following Indonesian President Prabowo Subianto’s visit to Russia in April.

Meanwhile, Russian Ambassador to Indonesia Sergey Tolchenov stated that Jakarta has not yet submitted detailed requests regarding oil purchases or cooperation in the development of nuclear power plants.

Speaking on June 23, Tolchenov said Moscow requires more specific information from the Indonesian government and businesses, including the type and volume of oil required, the ports that would be used, and the proposed payment arrangements.

By Bakhtiyar Abbasov