OFFICIAL: KEROSENE OVERSUPPLY MAY BE EXPORTED

Jakarta, Jan 30 (ANTARA) - An official of the ministry of energy and mineral resources said here on Thursday that the kerosene oversupply could be exported while the government would not just yet withdraw all the kerosene from the people.

"If the stock of kerosene is excessive it may be exported provided a government permit as well as an export permit from the ministry of trade is secured," the director general of oil and gas, Evita H Legowo, said in reply to a press question on the sidelines of a meeting with House Commission VII members.
The director of processing of state-owned company Pertamina, Rukmi Hadihartini, said before excess supply of kerosene in 2008, following the implementation of the government program of replacing kerosene with gas in the public and also current financial crisis reached 23,000 barrels of crude per day (MBCD) and would predictable rise to 89 MBCD this year.
"The excess stock has caused a tank top. That is why a way out must be sought for channeling it," she said.
Tank top means the production of oil which cannot be lifted while it is put in a storage.
On the possibility of Pertamina exporting diesel fuel Evita said it seemed impossible for now because the company right now is still importing it.
Evita said the government would not as yet stop distribution of kerosene but would divert it to regions that had not yet replaced kerosene with gas.
She said several regions still needed kerosene although the conversion program had been underway such as for batik industry and a lighting purpose.
"Two million kilo litres would still be lifted for lighting in households that have not yet had electricity," she said.
The Upstream Oil and Gas Executive Agency (BPH Migas) meanwhile stated that it was not impossible to stop distribution of kerosene across Java 100 percent but some remote regions on the island right now still needed it.
"It is not impossible to do it but some remote regions on the island still need it," its head of distribution, Tubagus Haryono, said. Therefore the kerosene would not be fully withdrawn from the people, but constantly monitored, he said.