IFC pulls out from Bontang refinery project

ESDM

The International Finance Corporation (IFC), the financial arm of the World Bank, has withdrawn as consultant in the planned US$14 billion Bontang refinery project in East Kalimantan, Bisnis Indonesia reported on Monday.

?It seems that the IFC has pulled out, but we have yet to receive the official letter,? said Setyorini Tri Hutami Upstream Business Director at the Ministry of Energy and Mineral Resources, but did not disclose the reasons for the resignation of the IFC.

IFC, which was appointed as consultant for the project in April of 2016, was supposed to be in charge of preparing the feasibility study of the project, and various documents for the project to enter the stage of tender process.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar reaffirmed last week the government?s decision to assign state-owned oil and gas firm PT Pertamina in developing the Bontang refinery project. Pertamina will then be allowed to select partner for the project. National Iranian Oil Company has expressed interest to participate in the project.

Pertamina Director for Processing and Perochemical Megaproject, Rachmad Hardadi said in October that the company is capable of developing the 300,000 bpd Bontang refinery project, and can complete it sooner.

He said that the company will seek a partner in the project, and the selection of a partner for the project is targeted to be completed end of next year, so that construction can start in 2019 in the hope that it can be completed in 2023. (*)