Four firms compete for contract to expand Cilacap refinery

Japanese firms Toyo Engineering Corp. and JGC Corp. along with South Korea?s GS E&C and American firm Flour Corp. have passed the prequalification selection in the tender for the contract to expand the capacity of state owned oil and gas firm PT Pertamina?s Cilacap refinery in Central Java.

?The project is expected to come on stream in 2012,? Pertamina?s Processing Director Suroso Atmomartoyo said on Tuesday.

He did not specify when the winner of the tender would be announced.

Pertamina plans to modify the refinery in a bid to increase its crude processing capacity to 410,000 barrels per day (bpd) from 348,000 bpd at present.

According to Suroso, Pertamina will have a 20 percent stake in the project in partnership with Japanese firm Mitsui with a 80 percent stake. Pertamina will provide some US$500 million funds for the $1.8 billion project with the rest is expected to be provided by its Japanese partner.

?Final investment decision is expected to be completed in March,? he said.

Suroso also said the front end engineering design (FEED) for the project will be handled by Japanese firm Toyo Engineering Corp. (Godang)