Pertamina expects to sign HOA with JX Nippon soon

By Febry Silaban

State owned oil and gas firm PT Pertamina (Persero) expects to sign a Heads of Agreement (HoA) with JX Nippon Oil & Energy Corp, Japan?s biggest oil refiner, on the project to expand the capacity of Pertamina?s Balikpapan refinery in East Kalimantan later this year.

?The talk with JX Nippon on the project is being finalized. We expect to sign an HoA this year," Vice President of Corporate Communications Wianda Pusponegoro said to Petromindo.com recently.

The project needs around US$5 billion of investment, she said.

Processing Director Rachmat Hardadi said earlier that the processing capacity of the Balikpapan refinery will be increased from 260,000 to 360,000 barrels oil per day and the refinery will be able to process sour crude with sulfur content of 64-67 percent thanks to the project.

The refinery will be jointly owned by Pertamina and the Japanese firm with a share composition of 70 percent for Pertamina, 30 percent for JX Nippon. The HoA for the project will be signed at the end of November, according to Rachmat.

Editing by Johannes Simbolon