Krakatau Engineering gets contract from Pertamina
Monday, March 10 2014 - 10:36 AM WIB
Construction and engineering firm PT Krakatau Engineering (KE), a subsidiary of state owned steel firm PT Karakatau Steel, has received a contract from state owned oil and gas firm PT Pertamina to develop the Phase I Open Access oil pipeline for the latter?s Dumai second refinery unit (RU II Dumai) in Riau.
The contract to develop the pipeline was signed in early February this year, according to the latest edition of Pertamina?s internal magazine.
Irwan Yulianto, SVP Business Development Refinery at Pertamina, said the contract signing was a ?milestone? in the firm?s refinery development plan.
Thus, the RU II Dumai has been only supplied by Chevron with crude from the Minas field. Once the Phase I Open Access pipeline has been completed, the refinery will be able to accept crude from other sources. The pipeline will improve the margin of the refinery. As such, the project must be completed on time, he said.
Minas, also known as Sumatran Light, is categorized as a sweet oil due to its high quality. It is sold at premium price on the market.
KE?s President Bambang Purnomo pledged that KE will complete the project on time, even earlier than schedule.
Editing by Johannes Simbolon