The selected licensors are expected to provide the technologies needed by the company for both refineries, said Pertamina processing director Rachmad Hardadi at his office in Jakarta on Monday.

There are 30 process licensors competing for the Tuban refinery project, while 15 licensors are involved in the selection for the Cilacap refinery upgrade.

“We will select companies with the best proven conversion technologies. We will consider several factors in their presentations, including consumption utilities, operational efficiency and maintenance simplicity before deciding which company should be the winner,” he added.

(Read also: Indonesia invites Iran to invest in refinery business)

The licensor for the Cilacap refinery upgrade will be announced in April, while the one for Tuban refinery will be decided in June, said Pertamina senior vice president of business development Iriawan Yulianto.

The Tuban refinery, which will be jointly developed by Pertamina and Russia’s Rosneft Oil Company, is expected to be completed in 2021 with a processing capacity of 300,000 barrels of oil per day (bopd). The project is estimated to cost between US$12 million and $14 million.

Meanwhile, the Cilacap refinery upgrade is expected to produce 400,000 bopd, up 15 percent from the current capacity. Pertamina has sealed a deal with Saudi Aramco to jointly develop the Cilacap facility with an investment value worth approximately $5.4 billion. (bbn)

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