The Jakarta Post
State-energy holding Pertamina is optimistic about its refinery plan, with investors expressing interest in doing business with the company.
A refinery in Cilacap, Central Java is awaiting spin-off approval from Saudi Aramco, a Saudi Arabian oil company, Pertamina refinery and petrochemical megaproject director Heru Setiawan said on Wednesday.
“We are still talking with Saudi Aramco. The plan is on schedule. Meanwhile, we are in the process of acquiring land in Cilacap,” he said.
Pertamina has to yet to decide on a partner for its refinery in Balikpapan, East Kalimantan.
Pertamina will maintain 51 percent ownership in its Balikpapan refinery project, Heru said, adding that Pertamina was also in talks with other investors, including those from Oman for a refinery in Bontang, East Kalimantan.
Pertamina is upgrading its four existing refineries and building two new ones to double Indonesia’s refining capacity to 2 million barrels of oil per day (bopd) by 2025 from 1 million bopd.
The four existing refineries are located in Cilacap; Balongan in West Java, Dumai in Riau; and Balikpapan in East Kalimantan. Meanwhile, the two new refineries are located in Tuban in East Java and Bontang.
Heru said its refinery business was expected to gain additional supplies from Rokan Block, a lucrative oil block Pertamina was set to take over in 2021. (bbn)