Pertamina ensures refinery development progressing well

PT Pertamina has been continually implementing breakthroughs to accelerate the development of refinery to realize a new history of energy self-sufficiency, which will enable Indonesia to free itself from reliance on oil imports and meet its local need from the production of oil refineries in the country.

The Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR) which are implemented by PT Pertamina is the key to the efforts of realizing the new energy milestone in Indonesia.

Pertamina’s Vice President for Corporate Communication, Fajriyah Usman said that the RDMP and GRR projects will increase the refinery’s processing capacity from 1.0 million barrels to 2.0 million barrels per day. With the capacity increase, all of local needs of oil fuels can be met by the refineries.

 “Prioritized by President Joko Widodo (Jokowi) as a national strategic project, Pertamina has been trying to accelerate its development so that it can be realized soon. This is our big dream to develop our energy security and self-sufficiency,” said Fajriyah.

Fajriyah added that with the acceleration, Pertamina can meet the targets already set and even make it faster than scheduled.

Currently, the RDMP of Balongan has applied dual feed competition, so that the project can be finalized one year faster than its schedule. The feasibility study of Balongan RMDP phase I has been implemented and has been continued with land procurement and feasibility study for phase II.

The Balikpapan refinery has been in the process of construction since February 2019. On May 7, 2019, a certificate of incorporation of PT Kilang Pertamina Balikpapan was signed. Currently, it is in the process of procuring its main equipment units and long lead item. Even some of the equipment units have been on the location.

Meanwhile, Cilacap refinery, after finalization of the PLBC, is undergoing a process of joint assets evaluation with Saudi Aramco. The RDMP of Dumai is in the process of negotiations with the partner from the Middle East.

The GRR of Tuban has finalized the process of land procurement and is now in the process of payment. Pertamina and Rosneft have even signed a design contract of Tuban refinery with a selected contractor on Oct.28, 2019.

Currently, the implementation of Basic Engineering Design (BED) and Front End Engineering Design (FEED) has been started.

In GRR Bontang, a partnership with OOG has been signed on Dec. 2018. Principle permit from East Kalimantan (Kaltim) Governor has been issued and is currently undergoing a study and review of spatial planning (RTRW).

 “Pertamina expressed its gratitude over the supports of stakeholders, so that the mega-project can be implemented well. The continual support from the central and regional government has strengthened Pertamina to realize the historical achievement,” said Fajriyah.

PLBC finalized

During the period of 2015 - 2019, Pertamina has finalized the blue sky project of Cilacap (PLBC), which marked a new era for Pertamina to produce oil fuels (BBM) with international standard of Euro4. It is in line with the government’s policy to apply the use of high standard BBM and environmentally friendly for the sake of realizing healthy Indonesia.

According to Fajriyah, PLBC has been in operation since July 2019 and integrated with the Refinery Unit IV Cilacap, so that the quality of BBM production increased significantly.

“With the operation of PLBC,  Pertamina managed to increase the production of Pertamax up to 60 percent from 1.0 million barrels to 1.6 million barrels per month. The BBM production will be supplied in 4 provinces, namely Jakarta, West Java, Central Java and Yogyakarta,” said Fajriyah.

As a project of energy infrastructure, PLBC has brought in a huge benefit for Indonesia. During the peak of its construction, it can open job opportunities for up to 2,500 workers. With the operation of refinery project, Pertamina will be able to reduce BBM imports around Rp10 trillion per year.

Editing by Benget Besalicto ST