Pertamina sells prompt LSWR cargo to Itochu for early-Sep lifting

Indonesia's Pertamina has sold a spot cargo of 200,000 barrels of mixed-cracked low sulfur waxy residue to Japanese trader Itochu for loading over September 5-7 from Dumai at flat to a premium of 50 cents/barrel to Pertamina's formula, industry sources said Monday.

 

Pertamina uses a formula comprising four published LSWR assessments -- Platts (25%), FEOP (25%), RIM (25%) and Argus (25%) -- plus 65 cents/barrel for mixed-cracked material and $1.65/b for straight-run LSWR.

Itochu was heard to have bought the cargo from a Pertamina affiliate.

Although the cargo is relatively prompt, a trading source said Pertamina's affiliate had been trying to sell the cargo through private negotiations since mid-August.

However, having failed to find a buyer, it decided to offer it publicly in the market.

Pertamina allocated a total of 2.4 million barrels of LSWR for export in September. According to sources, most of the spot cargoes were allocated to Pertamina affiliates, namely Kipco, Petral and PPT.