Pertamina to Select Partner for Bontang Refinery in 2017
16 December 2016 21:50 WIB
TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry has assigned state oil and gas company Pertamina to build an oil refinery and petrochemical facilities in Bontang, East Kalimantan.
“We positively welcome this assignment from the government and will do our best to realize the project so it can be carried out as expected,” Pertamina spokesperson Wianda Pusponegoro said in a press release on Friday, December 16, 2016.
Under Presidential Regulation No. 146/2015, the government requires Pertamina to be the project operator that will be responsible for refinery developments. In return, the government allows Pertamina to select its own partners.
Pertamina megaproject and refinery director have set a target that the partner selection could be expedited by late 2017. At the same time, the company also expected the bankable feasibility study (BFS) to be completed soon.
Rachmad claimed that the Bontang refinery development could be accelerated since its location is near the Bontang LNG refinery operated by Pertamina’s affiliation PT Badak NGL.
It is expected that the initial development stage or land procurement can be commenced in early 2018, and the construction can be started in 2019. Pertamina has set a target that the US$13 billion worth of refinery will be fully operational by 2013.
The Energy and Mineral Resources Ministry expected the refinery to produce 60,000 barrels of gasoline per day and at least 124,000 barrels of diesel fuel per day. The minimum capacity of the refinery is set at 300,000 barrels per day, and the product quality is expected to meet the Euro IV standards.
Energy and Mineral Resources Deputy Minister Arcandra Tahar said that the realization of the project could be expedited to 3.5 years. According to him, the acceleration is necessary to boost domestic oil refinery as mandated by President Joko “Jokowi” Widodo.
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