Pertamina, ETA Star, Itochu reconfirm Balikpapan refinery revamping deal
Monday, March 2 2009 - 12:16 AM WIB
State oil and gas company PT.Pertamina will sign on Monday a Memorandum of Confirmation (MoC) with UAE firm ETA Star and Japanese firm Itochu Corp. to enhance capacity of Balikpapan refinery in East Kalimantan to produce higher value products and to expand the refinery?s production capacity.
Processing Director Rukmi Hadihartini told Petromindo.Com on Monday the MoC would be signed during a World Islamic Economic Forum (WIEF) in Jakarta.
The MoC was a reconfirmation of commitment signed previously in September 2008 between the parties to expand Balikpapan refinery capacity, she said.
Under the September 2008, Balikpapan processing capacity will be increased to 280,000 BPD from 260,000 BPD currently. The parties had then also planned to switch Balikpapan from sweet to sour crude in a bid to cut costs. They were also considering adding a 50,000 bpd cracking unit in Balikpapan to process heavy residue to up gasoline and petrochemical output.(godang)