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Chinese Firm Eyeing Bontang Refinery

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13 November 2017 20:36 WIB

Minister of Energy and Mineral Resources, Ignasius Jonan. TEMPO/Dhemas Reviyanto

TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Ignasius Jonan revealed that a Chinese company is in talks with Pertamina about the Bontang refinery project. Jonan said the ministry will support cooperation in the refinery sector.

Bontang fuel refinery is a new refinery project with a capacity of 300,000 barrels per day. The Bontang refinery will be built alongside a petrochemical complex, targeted for completion in 2024.

"In the field of oil refineries, we support good partnerships. At this time, we know that a company from China is discussing about cooperation with Pertamina in the latter's grass root refinery in Bontang," he said at the 5th Indonesia-China Energy Forum on Monday, November 13.

Read: Pertamina to Name Partner on Bontang Refinery Project in April

Sometime ago, the House of Representatives' (DPR) Commission VII deputy Syaikul Islam said that the Bontang and Tuban fuel refinery projects are not very attractive. Bontang, he said, has a low internal rate return (IRR).

According to Syaikul, this is likely because the refinery is only focused on fuel oil. If integrated with petrochemical, he argued, the project can become more attractive to businesses. 

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