TEMPO.CO, Jakarta - State-owned oil and gas company PT Pertamina (Persero) will name a business partner on a new grassroots refinery (GRR) project in Bontang, East Kalimantan, in April through a selection process.
“We will invite global refining companies to participate in [the tender for] Bontang refinery. We expect to have a partner at the end of April 2017,” Pertamina vice president for corporate communication Wianda Pusponegoro said in a public expose held in Jakarta on Monday, February 13, 2017.
Wianda noted that the company will offer the project at the end of February to 37 global refinery companies qualified in building refineries and 20 oil and gas companies. The tender will be open for participation of global financial institutions.
Companies participating in a tender for NGRR Tuban refinery in East Java will also be allowed to join due to the lack of available qualified refinery companies.
After the tender, Pertamina will select one out of three to five potential partners.
Pertamina has so far secured 460 hectares of land for Bontang refinery project available for lease. The location is adjacent to a gas-rich area.
The area has already housed outside battery limits (OSBL) facilities belonging to KNG Badak available for Bontang refinery projects, such as steam, electricity generator, water facilities and a jetty.
Bontang refinery is expected to have a capacity of 300,00 barrels of oil per day, producing 60,000 barrels of gasoline per day and a minimum of 124,000 barrels of Euro IV standard diesel fuel per day.
Having set 2023 deadline for the Bontang refinery project completion, Indonesia expects to pump 1.8 million barrels a day of oil, or larger than its domestic demand of around 1.6 million barrels per day. As such, Indonesia is aiming to stop oil export by 2023.