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Pertamina hoping to steal Singapore business with new bunker unit

Pertamina hoping to steal Singapore business with new bunker unit
Indonesian state-owned oil company Pertamina is venturing into the bunker business and will set up a new subsidiary by September, local reports quoted company officials as saying.

"The subsidiary must be formed by September," Pertamina president director Dwi Soetjipto was cited as saying. The diversification is part of the company's strategy to expand its downstream business.

The new subsidiary, which will be called Pertamina International Downstream Services, will become the operator of the upgraded fuel terminals on Sambu Island, Batam, and in Tanjung Uban in Bintan, both relatively close to top bunker fuel port Singapore.

Pertamina has been upgrading the fuel terminals at Sambu and Tanjung Uban since February 2012. The Sambu fuel terminal will start operating in July and the terminal in Tanjung Uban will be operational by October, Dwi said.

The Sambu fuel terminal is equipped with an automation system and a blending facility for high-speed diesel and marine fuel oil while the Tanjung Uban fuel terminal has also been automated as well as had its dock capacity upgraded.

Dwi has previously said that the completion of Sambu terminal is an important milestone, which will allow Pertamina to provide storage and blending facilities. It is hoped the two upgraded fuel terminals will help Pertamina gain between 5% and 10% of the bunker fuel business in the Malacca Strait, from the its current 1% market share.