Hi-Tech, Pertamina sign head of agreement to build E. Java refinery
Friday, June 8 2001 - 03:13 PM WIB
According to Pertamina media release, the refinery is expected to start operations in 2005 with 150,000 barrel per day crude processing capacity.
The two companies had earlier signed a memorandum of understanding.
The statement said HTIG and Pertamina would form an 85 : 15 joint venture company to operate the project.
100 percent project financing will be provided by HTIG.
Both parties will carry out a feasibility study on capacity, refinery configuration, project financing, economic projection, business plan and project planning. Engineering, procurement and construction contractor will be decided by both parties and opened for international standard.
According to Pertamina?s president Baihaki Hakim, the refinery is designed to meet fuel requirement for East Java, which is currently supplied from East Kalimantan refinery in Balikpapan.
Baihaki said that some portion of crude supply would come from ExxonMobil?s Cepu production in East Java, which was expected to reach 100,000 barrel per day in 2004, while the balance would be imported from Middle East.
He said that HTIG had already secured the support from Saudi Arabian oil company Aramco to supply the crude.
Baihaki estimated the project would cost US$ 1.5 billion. (alex/godang