More than 50 firms to participate in Bontang refinery project expose
Friday, February 24 2017 - 03:38 PM WIB
Pertamina Director of Petrochemical and Processing Megaproject, Rachmad Hardadi said on Friday that the company plans to hold the project expose in a bid to select strategic partner for the planned development of the Bontang grass root refinery project in East Kalimantan.
He said that Pertamina has set four criteria in selecting partner for the project including solid track record in the oil refinery industry particularly in terms of operation and project execution; able to adjust to the business model and structure preferred by Pertamina; possesses strong will to complete the project in 2023; and provide additional value for the Bontang refinery project.
?Until today, there are more than 50 companies with world class competency to participate in the project expose on February 28,? Rachmad said. ?This is of course a positive signal for the Bontang refinery project.?
Rachmad said that Pertamina hopes to be able to select the strategic partner for the Bontang refinery project on April 28 of this year, to be followed with setting up a joint venture and conduct bankable feasibility study which is targeted to be completed early 2018.
The planned Bontang refinery project will have a capacity of around 300,000 bpd. In the initial phase, Pertamina aims to have a 5-25 percent stake in the project, with an option to increase the stake in the future.
The strategic partner is expected to play a role in providing the required crude and financing, and also has ability to market fuel products that are not absorbed by the domestic market to countries such as Australia, Papua New Guinea, New Zealand and the Philippines.
Pertamina has previously formed partnership with Russia?s Rosneft Oil Company to develop the Tuban refinery project in East Java, and with Saudi Aramco in the expansion of the Cilacap refinery in Central Java.
Editiang by Reiner Simanjuntak