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Jakarta Post

Pertamina mulls relocating multibillion-dollar project to Sumatra over land issue

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

PREMIUM
Jakarta   /   Wed, March 4, 2020   /  02:10 pm
The Jakarta Post Image
Two workers are involved in a discussion at the Badak liquefied natural gas (LNG) plant in Bontang, East Kalimantan.(Courtesy of/badaklng.co.id)

Indonesia’s top oil company is looking to relocate a US$13.9 billion project over 2,000 kilometers away due to prolonged land acquisition problems at the original site. State-owned oil company Pertamina is conducting a study into moving its oil refinery and petrochemical plant project from Bontang city in East Kalimantan to Kuala Tanjung in North Sumatra.  The plan follows the expiration of an agreement between Pertamina and Omani energy firm Overseas Oil and Gas LLC (OOG) to develop the facility in Bontang, where the enterprises face land acquisition problems. The one-year deal between the two enterprises ended December last year. Read also: Low oil prices push Pertamina's 2019 profit down 16% to $2.1b “[Pertamina put Kuala Tanjung on the table because] it is closer to the market and the land is available,” Pertamina investment and risk management ...