TEMPO.CO, Jakarta – The director of state-owned oil and gas company PT Pertamina, Ahmad Bambang, said the company would soon sign a Memorandum of Understanding with four foreign oil companies.
The cooperation aims at upgrading Pertamina’s five oil refineries. “With Saudi Aramco, CNOC from Japan and oil companies from Thailand,” said Bambang on Wednesday.
Bambang said the current total capacity of Pertamina’s refineries is 800,000 barrels per day. With the upgrade, he went on, the capacity was expected to rocket to 1.6 million barrels per day in 2019.
The five refineries that will be upgraded include Cilacap, Balongan, Balikpapan and Dumai refineries. Dumai is the last to be upgraded, allowing for its difficult transportation access. “The total investment is US$20-25 billion for all refineries,” said Bambang.
He further said the funds to develop the refineries were obtained from Pertamina’s capital and a cooperation scheme with four foreign companies. After the MoU is signed next week, Pertamina will seek the head of agreement.
"The costs for upgrading from foreign companies will be paid by Pertamina with production results,” he said.