Indonesia outlines plans for new refineries, upgrades

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Feb. 15 -- Indonesia's state-owned PT Pertamina, aiming to reduce fuel imports by boosting domestic supply, plans to construct two new refineries and upgrade an existing facility.

"We still import fuels in a large volume," said Indonesian President Bambang Susilo Yudhoyono, adding that, as a matter of economic efficiency, Pertamina "will build three refineries within 3-5 years."

Pertamina Corp. Sec. Toharso said two of the planned refineries would be new: one in Bojonegara, Banten, and another in Tuban, East Java. The third project, meanwhile, will be an expansion of the existing refinery at Balongan in West Java.

The total capacity of the three planned refineries will be 400,000 b/d, Toharso said, adding that Pertamina is looking for partners for oil supplies as well as for financing of the new facilities.

"We're considering an Iranian company to become our crude oil supplier," Toharso said. "But the process is progressing slowly and we're trying to expedite this."

The decision to construct new refineries comes as Indonesia's domestic demand has far outstripped Pertamina's production.

In 2008, Pertamina produced 227.2 million bbl of fuels and imported 142.1 million bbl. In 2007, Pertamina produced 226.1 million bbl of fuels and imported 138.7 million bbl.

However, despite the need for new refining capacity, officials earlier this week said that Pertamina has no plan to import diesel oil and kerosine this year under the firm's public service obligation (PSO) as production by its own refineries would be sufficient.

On Feb. 11, the director general of oil and gas of the ministry of energy and mineral resources, Evita Legowo, told a meeting of the Energy Commission of the House of Representatives that Pertamina would import only premium gasoline this year.

She said that premium gasoline consumption under the PSO this year had been set at 123.856 million bbl, while the refineries could produce only 68.35 million bbl, leaving Pertamina to import 55.506 million bbl.

Last week, in a bid to boost the country's production, a state official said that Royal Dutch Shell PLC could improve its chances of participating in the Natuna D-Alpha Block by transferring its oil refining operations to Indonesia from Singapore (OGJ Online, Feb. 10, 2009).

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Maintenance underway at Jamnagar refinery

03/27/2014 Reliance Industries Ltd. (RIL) has shut down one of three paraxylene units for planned maintenance at its 660,000-b/d Jamnagar refinery at Gujarat,...

Petronas progresses on RAPID project

03/27/2014 BMT Asia-Pacific Pte. Ltd. (BMT), a subsidiary of BMT Group Ltd., has completed a concept design for the material offloading facility (MOLF) at sta...

ENOC lets contract for Jebel Ali refinery upgrade

03/27/2014 Emirates National Oil Co. (ENOC) has let a front-end engineering and design (FEED) contract to KBR for the upgrade of its 120,000-b/d condensate re...

EPA leads investigation of crude discharge at BP Whiting refinery

03/26/2014 The US Environmental Protection Agency took formal charge of investigation and cleanup efforts after an undetermined amount of crude oil spilled in...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected