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Jakarta Post

Pertamina to build new apartments to make space for refinery upgrade

  • Fedina S. Sundaryani

    The Jakarta Post

Balikpapan   /   Thu, June 9, 2016   /  02:37 pm
Pertamina to build new apartments to make space for refinery upgrade Powerhouse: Locals fish in shallow water near an oil refinery belonging to state-owned oil and gas giant Pertamina in Cilacap, Central Java. The facility, which produces up to 348,000 barrels of oil per day, is the biggest of its kind in Indonesia, supplying around a third of the nation’s fuel. (The Jakarta Post/Agus Maryono)

State-owned oil and gas company Pertamina plans to clear out existing employee housing near a refinery in Balikpapan, East Kalimantan, to make way for upgrades. 

Pertamina director for refineries Rachmad Hardadi said on Thursday that four apartment towers, consisting of 24-floors each, would be built for refinery employees and their families in a project worth Rp 497 billion (US$37.4 million).

The 91-meter-high towers, with a combined 300 apartments, will be the tallest buildings in Balikpapan and are scheduled for completion in March next year. 

"The apartments will be for our workers because the refinery's capacity will be even bigger and more complex [after the upgrade], so there needs to be a quicker response. If employees live close by then their readiness and manpower will be better guaranteed," he said at a media conference at the refinery in Balikpapan. 

Once upgraded, the Balikpapan refinery is expected to increase production from 260,000 barrels of oil per day (bopd) to 360,000 bopd. 

The Balikpapan refinery is planned to be set into motion in two phases, the first of which is set to be completed in 2019. 

Rachmad said the first and second phases together were estimated to cost $4.6 billion. 

The Balikpapan refinery is one of Pertamina's refineries that will be upgraded to a higher capacity to produce more complex products. Other refineries undergoing similar upgrades are Cilacap, Dumai and Balongan, in which Pertamina will cooperate with Saudi Aramco. (dmr)


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