Pertamina appoints consultants for Tuban refinery project
Monday, December 19 2016 - 06:28 AM WIB
Balongan refinery
State-owned oil and gas firm PT Pertamina said that PT Greencap NAA Indonesia has been appointed as consultant to carry out the environmental impact assessment (or AMDAL), and environmental and social impact analysis (or ESIA) for the planned Tuban refinery project in East Java Province.
Pertamina said in a statement that it aims to accelerate the completion of the AMDAL and ESIA as part of key requirements before starting land preparation for the planned refinery project to be developed with its partner Russia?s Rosneft.
?An important requirement for land clearing and site preparation is the AMDAL permit. That?s why we have appointed Greencap as consultant for the (AMDAL and ESIA studies),? said Director of Processing and Petrochemical Megaproject at Pertamina, Rachmad Hardadi in the statement issued last week, following a kick-off meeting with Rosneft to start the AMDAL and ESIA studies.
The statement said that AMDAL study is expected to be completed in six months, while ESIA is targeted to be completed in September 2017.
Hardadi said that President Joko Widodo has asked Pertamina to be able to start construction of the Tuban refinery project in July of next year.
Pertamina and Rosneft signed in October an agreement to form a joint venture company in February of next year for the development of the refinery project, under which Pertamina will own a 55 percent stake, while the remainder to be held by Rosneft.
Elsewhere, Pertamina said in the statement that it has previously also appointed a number of consultants to carry out the bank feasibility study (or BFS) including Technip for technical aspect, Nexan for marketing analysis, and the Institute Teknologi Sepuluh November University (ITS) and Airlangga University for local aspect study.
Rachmad said the studies by Nexan and ITS and Airlangga have been completed, while the study by Technip is expected to be completed in January.
Once the BFS has been completed, Rachmad said that Pertamina can make capital expenditure estimate, and the material balance so that the economic scale of the project can be determined in February, by which time the first pre-investment decision will be decided. ?Progress has been quite good,? he said.
The statement said that the refinery project, which will have a design capacity of 300,000 bpd, is targeted to be completed at the end of 2021.
Editing by Reiner Simanjuntak