Four firms compete for refinery renovation projects
Tuesday, November 18 2014 - 01:48 AM WIB
The paper quoted Pertamina Processing Director Chrisna Damayanto as saying that there were four foreign firms participated in a beauty contest held by the company. The foreign firms include Saudi Aramco, PTT Thailand, JX Nippon Oil, and SK Energy.
The beauty contest was held following the completion of a feasibility study on refinery development master plan program conducted by UOP LLC, a subsidiary of US-based Honeywell, at the request of Pertamina. The study is used as the basis to hold tender to select the contractors for the refinery modernization and upgrading program.
Chrisna said that tender to select the contractors is expected to be concluded soon and that the results would be announced on December 10. ?Pertamina can select one to three contractors to carry out the refinery modernization project,? he said, adding that the contractors will also be asked to share the risk in the project that would require total investments of US$17 billion, of which $1.2 billion to be contributed by Pertamina with the remainders to come from the contractors.
Construction work is expected to start in 2016. Although not all five refineries will undergo upgrading and modernization work at the same time, but they?re all projected to be completed in 2025, said Chrisna.
The five refineries are the Balikpapan refinery in East Kalimantan, Cilacap refinery in Central Java, Dumai refinery in Riau, Plaju refinery in South Sumara, and Balongan in West Java.
The upgrading and modernization project is expected to bolster the combined capacity of Pertamina?s refineries from 800,000 bpd to 1.8 million bpd.
Chrisna said that despite the upgrading and modernization project, the country will still need two additional refineries going forward, each with a capacity of 300,000 bpd. (*)