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Bontang refinery eyes foreign buyers for its fuel products
Oman’s OOG holds a 90 percent stake in the Bontang refinery with Pertamina holding a 10 percent golden stake.
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A worker riding bicycle passes through an area at the Balongan oil refinery facility, which is owned by state-owned energy company Pertamina in Indramayu, West Java. (Antara/Rivan Awal Lingga)
A large-scale refinery plant to be jointly built by Omani energy firm Overseas Oil and Gas LLC (OOG) and state-owned oil company Pertamina in Bontang, East Kalimantan, will not only sell its fuel products on the domestic market, but also to neighboring countries such as Australia.
The new grass roots refinery, which will have a capacity of 300,000 barrels per day (bdp), will become the country’s largest refinery because it will be integrated with a petrochemical plant. The investment for the new refinery is expected to reach US$10 billion.
Pertamina’s president director, Nicke Widyawati, said the new Bontang refinery would produce gasoline, aviation turbine fuel, and liquefied petroleum gas (LPG) for both local and overseas markets
OOG’s chairman, Khalfan Al Riyami, added that the fuel products to be produced by the Bontang refinery would not only be sold in Indonesia, but also to neighboring countries, like Australia.
“Part of the products will be exported because certain products that are not needed by Indonesia could be exported to other countries,” he said during a visit to Jakarta recently.
OOG holds a 90 percent stake in the Bontang refinery with Pertamina holding a 10 percent golden stake. The Omani company expects to complete the feasibility study for the construction of the refinery this year.
