Indonesia is working on a special import scheme and regulatory framework to fulfil its plan to import 150 million barrels of crude from Russia this year, an official said, with data showing only one shipment has reached the country so far.
Last month's announcement of the Russian import deal, which is part of Indonesian efforts to offset shortages resulting from the Iran war, came after President Prabowo Subianto met President Vladimir Putin in Moscow.
Even with a framework in place, the target is seen in the market as ambitious, as in order to deliver 150 million barrels between mid-year and the end of January would require shipments of roughly 700,000 barrels per day, approaching the amount of crude Russia sends to buyers such as Turkey.
Russia exports around five million barrels of crude per day, mostly to China and India, and allocating such a large volume to a new buyer would mean diverting oil from others, which could prove difficult, oil traders told Reuters.
Russia's energy ministry did not respond immediately to a Reuters request for comment.
Senior Indonesian energy ministry official Laode Sulaeman told reporters this week that no company has yet been appointed to conduct the imports, without giving a timeline.
"Pertamina has global bonds and it has to avoid things that can violate the terms of their global bonds. That's why we are in the process of coming up with a scheme," Sulaeman said, in reference to Indonesia's state energy firm.
Asked about the import plan, Pertamina spokesperson Muhammad Baron said on Friday, "The entire process will be carried out in accordance with government directives, while prioritising the principles of good corporate governance and applicable regulations".
Limited availability of tankers capable of transporting Russian crude due to Western sanctions, coupled with the long distances involved, is likely to make such deliveries difficult and costly, traders added.
Shipping data showed no direct crude shipments were scheduled for the near future, oil traders said, while Kpler data showed the only recent cargo involving Russian crude was an Arctic Novy grade shipment delivered to Indonesia on April 21.
Indonesia, which imports about one million bpd, will seek extra supplies even if Russian crude materialises to bolster supply security, government officials have said.
Jakarta is also pursuing crude imports from other suppliers, including the United States.
(Reporting by Fransiska Nangoy and Bernadette Christina in JAKARTA, Reuters reporters in MOSCOW; Editing by Alexander Smith)
