Pertamina, consortium sign $200-million loan accord for unleaded gasoline projects

State oil and gas firm Pertamina Tuesday signed a US$200-million commercial loan agreement with a consortium of creditors for unleaded gasoline projects at Cilacap and Balongan refineries.

Pertamina president director Baihaki Hakim and Yoko Te, Chief Executive Officer of Japan?s Mitsui Corporation which leads the consortium, signed the agreement in Jakarta.

Consortium members included Japan Bank of International Cooperation, UFJ Bank, Credit Lyonnais Bank, ING Bank and Bank of Tokyo.

In addition to the $200 million pledged by the consortium, Pertamina will also use its own funds amounting to $75 to finance the unleaded gasoline projects, which are part of the government?s Blue Sky program.

Of the $275 million, $191 million will be for Balongan, in West Java, and $84 million for Cilacap (Central Java).

Pertamina said earlier that the construction of the Cilacap facility would start in June, and expected unleaded gasoline production in 2005. (godang)