Bojonegoro refinery improves Pertamina?s efficiency in central part of Java

The operation of the new oil refinery owned by PT Tri Wahana Universal (TWU) in Bojonegoro, East Java, will help improve the efficiency of state-owned PT Pertamina in fulfilling the rising demand of petroleum-based fuels (BBM) in the central part of Java island, Pertamina?s marketing director Djaelani Sutomo said.

He told Petromindo.com recently after attending the signing ceremony of a purchase contract between PT. TWU and PT Patra Niaga, a subsidiary of Pertamina, in the East Java?s city Bojonegoro, which is close to the Central Java province. Based on the contract, Patra Niaga will buy between 10,000 kiloliter and 13,000 kiloliter of diesel oil per month.

?With the refinery operation, we can reduce our import of BBM,? he said, adding that as the fuel was produced in the area, his company?s cost of distribution would be also cut.

Patra Niaga?s president director Hasto Wibowo said that cooperation between his company and TWU would not only be limited on sales, but also value creation that would benefit both. ?Patra Niaga did not provide any new investment on this project as we only use the existing infrastructure there,? he said.

According to him, the cooperation will last for one year and most likely be extended. Initially, its production will be only 12,000 kiloliter per month and later will be increased. ?It?s still small but it?s beneficial for Pertamina,? said Hasto.

He added that in the near future the Cepu and Humpuss oil refineries would also start operation.

PT TWU?s president director Rudi Tavinos said that his company would initially supply Patra Niaga with between 10,000 and 13,000 kiloliter of diesel oil per month. ?But later we could supply them with other products,? he said.

The TWU?s refinery will initially have a processing capacity of 6,000 barrells per day of crude. Its other products include off gas, SRG (solvart), naphta, and VTB. (bernard)