Jakarta. Indonesia has named US crude as its plan B after two tankers belonging to the state-run energy firm Pertamina got stuck in the Persian Gulf amid the Iran-Israel war spillover to global oil shipments.

Pertamina International Shipping (PIS), the company’s marine logistics arm, reported that two of its tankers have been affected by the conflict-related disruptions. One vessel, Pertamina Pride, had completed loading cargo in Ras Tanura, Saudi Arabia, but was unable to exit the Persian Gulf. Another tanker, Gamsunoro, is currently in Khor al-Zubair, Iraq, where it remains in the process of loading fuel.

Energy Minister Bahlil Lahadalia told reporters on Tuesday that Jakarta would engage in diplomacy to free the tankers. If Indonesia can't get the tankers out soon, the country will look for other alternatives.

“We have already secured this alternative. So [stranded tankers] can be a problem, but it is not a substantial one,” Bahlil said. 

All this time, the Middle East has supplied 25% of Indonesia's crude imports. However, traffic through the Strait of Hormuz —  the world's busiest oil shipping channel —  has ground to a near halt. This strait is the only sea channel that links the Persian Gulf to the open ocean. And so, Indonesia will have US crude to “cover what the country usually procures from the Middle East”, according to Bahlil. 

The minister did not say the exact amount of crude needed to narrow the gap left by the trapped tankers. But a freshly signed tariff deal saw Indonesia committing to facilitating the purchase of $4.5 billion worth of American crude. The pact includes import pledges for $3.5 billion worth of liquefied petroleum gas (LPG) and refined gasoline at $7 billion. 

Bahlil remains upbeat that Indonesia’s gasoline imports will be immune to the Hormuz chaos, as the country mainly buys from outside the Middle East, including ASEAN. Indonesia’s annual LPG import hits the 7-million mark, and an estimated 70% of the fuel gas comes from the US. The Middle East — in particular Saudi Arabia — covers the remaining 30%, prompting Indonesia to search for alternatives that do not have to pass through the Hormuz Strait.

“We can’t predict when this tension will be over. … That’s why we are taking the worst-case scenario of a prolonged conflict. So what should we do? Diverting the [import volume] allocated to Middle Eastern crude to the US to ensure its availability at home,” Bahlil said. 

Local news outlets quoting PIS acting corporate secretary Vega Pita had said that two other vessels — the Rinjani and Paragon — were already in a relatively safe region. Vega said the company is in “close communication” with the ship management to make sure that not only the stranded vessels but also the crew are safe and sound.

Add as a preferred source on Google +