Pertamina on Wednesday (9 October) confirmed the establishment of bunkering arm Pertamina International Marketing & Distribution, Pte Ltd (PIMD) is not to replace Pertamina Energy Trading Ltd (Petral) which is currently under investigations over corruption.
“Petral is Pertamina's trading arm in importing crude oil for domestic needs, while PIMD is a trading arm for selling Pertamina products and third-party products on the international market. So clearly PIMD should not be confused with Petral, because PIMD focuses on generating additional income through overseas sales. So it is not to meet domestic needs,” said Fajriyah Usman, Pertamina VP of Corporate Communication in Jakarta.
The fulfilment of the need for crude oil and domestic fuel products is still carried out according to the mandate of the government, namely by Pertamina's internal functions through the Integrated Supply Chain (ISC), she said.
“Currently, PIMD also plays a role in capturing business opportunities in the Southeast Asian bunker market, especially in Singapore, and this is an operational business. Moving forward, the company is also working on selling other product opportunities directly to end customers in the international market by building a retail business in order to introduce the Pertamina brand globally,” notes Usman.
The target set for PIMD’s bunker sales volume is around 60,000 mt per month in the early stages; this will expand to 200,000 mt, or about 5% of market share in Singapore bunker market.
In addition, PIMD is also projected to enter the retail and liquefied petroleum gas (LPG) fuel sales markets in the Philippines, Thailand and Myanmar.
“If other oil and gas companies can work on our market, why can't Pertamina?” She asks.
“The expansion of Pertamina's business reach through PIMD in the Asian region will further strengthen Pertamina's position in the regional competition arena.
“This will also be the driving force for Pertamina to reach the target of being ranked in the top 100 of the Fortune Global 500 list, which this year Pertamina is in the 175th position.”
Photo credit: Pertamina
Published: 14 October, 2019
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