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More than 50 companies express interest in Bontang oil refinery construction
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A worker rides a bicycle through an area in the Balongan oil refinery facility owned by state-owned energy company PT Pertamina in Indramayu, West Java. Pertamina plans to build a new oil refinery in Bontang, East Kalimantan. (Antara/Rivan Awal Lingga)
M
ore than 50 companies will explore the possibility of taking part in the Bontang oil refinery project from state-owned oil and gas firm Pertamina during its public expose next Tuesday.
Pertamina processing and petrochemical megaproject director Rachmad Hardadi said the firm would be looking until the end of April for a strategic partner, either a single firm or a consortium of investors, for the project.
“More than 50 potential partners, whom, we believe, have world-class competency for a processing and petrochemical megaproject, have said that they will attend the Bontang GRR [grass roots refinery] project expose on Feb. 28,” Rachmad said during a press conference on Friday.
“This is not only a good sign for the Bontang GRR project, but also shows that the investment climate in Indonesia for this sector remains enticing,” he added.
(Read also: Pertamina to build $9b oil refinery in Bontang)
Pertamina seeks to control a minimum share of between 5 percent and 25 percent in the refinery project.
The Bontang refinery in East Kalimantan will have an initial production capacity of 300,000 barrels of oil per day (bopd) after construction is completed, which will be in 2023 according to plans.
The development of the refinery is part of Pertamina’s long term plan to increase its domestic refinery capacity to more than 2 million bopd in the next decade. (lnd)
