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Pertamina Evaluates Refineries, May Close Some Down

27 February 2015 13:06 WIB

Kilang minyak Pertamina di Balongan Indramayu, Jawa Barat. ANTARA/Rosa Panggabean

TEMPO.CO, Jakarta – State oil and gas company PT Pertamina (Persero) is evaluating the performance and efficiency of several fuel refineries. "Based on our calculations, refinery production is still losing money because of the high production cost," said marketing and business director Ahmad Bambang yesterday.

Bambang said some things that are causing high production costs include outdated technology and the scarcity of certain crude oil supply in the market.

An evaluation is also needed as some heavy oil outputs, such marine fuel oil (MFO), is cheaper than the price of crude oil.

After the evaluation, Bambang said the company may decide to shut down a number of refineries to cut marketing losses. But Pertamina will take into account the impact of stopping the operations of some refineries.

Currently, Pertamina's most efficient refinery is the youngest one, Balongan Refinery in Indramayu, West Java. The most inefficient one is Kasim Refinery in Papua.

Pertamina is preparing the Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR) programs to double the processing capacity of its crude oil from 820,000 barrels per day (bpd) to 1.68 million bpd.

AYU PRIMA SANDI



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