Kuwait Petroleum, Pertamina reviewing refinery project
Tuesday, March 13 2012 - 12:11 AM WIB
State oil and gas company PT Pertamina and its partner Kuwait Petroleum Corporation are now reviewing the planned Balongan II refinery in Indramayu, West Java, after their demand for incentives was rejected by the government.
President Director of Pertamina, Karen Agustiawan, told Petromindo.com that Kuwait Petroleum is still assessing the project. Pertamina is also reviewing the project whether to find a new partner should Kuwait Petroleum pulls out from the project.
Karen stressed that an important element in moving ahead with the refinery project is the security of crude oil supply. ?The development of the refinery project is not only about who will be its investor, but most importantly is the oil supply? Karen said.
Kuwait Petroleum has earlier stated that it is committed to supply crude oil to the planned Balongan II project.
In mid February 2012, Pertamina and Kuwait Petroleum reached an agreement to construct the Balongan II refinery. Pertamina has earlier expected the refinery will be ready for operation by 2018.
Editing by Roffie Kurniawan