Pertamina, partners sign Banten refinery JV company

State oil and gas company PT Pertamina and its partners have signed a agreement to establish a joint venture to develop a crude refinery in Banten Bay, a Pertamina official said.

Pertamina?s Processing Director Rukmi Hadihartini said Thursday that in the JV company, Pertamina has 40 percent stake while National Iranian Oil Products Refining &Distribution Company (NIORDC) and Malaysia?s Petrofield Refining Company will have 40 percent and 20 percent shares, respectively.

The JV will develop a refinery with capacity of 300,000 barrels per day. Earlier reports said the project would cost the JV around US$5 billion with completion seen in 2015.

Earlier, Pertamina?s Vice President for Strategic Planning and Business Development, Priyo Utomo, said that the state oil company would discuss the possible involvement of STX only after the joint venture had been formally established.

?We hope we will be able to make decision within the next three days,? he said, adding that if STX finally agreed to take part in the project, the ownership in the joint venture would consequently change. (bernard)

Banten Refinery Project Summary

Capacity 300,000 BPD

Start-up date 2012 (first phase, capacity 150,000 BPD)

BFS contractor/completion Axen Consultant/ February 2009

Shareholders Pertamina (40%), Oil Refining Industries Development Company (ORIDC) of Iran (40%) and Petrofield Malaysia (20%).

Crude Feed/Supplier Iranian Extra Heavy Crude (50%) and Iranian Heavy Crude (50%), supplied by NIORDC of Iran.

Products LPG, aviation fuel, gasoline RON 90/95, diesel, fuel oil, coke and sulfur

Refinery type High complexity, Total Conversion (Coker + Hydrocracker).

Offtaker Pertamina 70%, export

Project milestones (i) Shareholder Agreement (SHA) PT Pertamina, ORIDC and Petrofield, signed March 11, 2008;(ii) 110MMCFD gas supply agreement between PT BAGS and Pertamina;(iii) Support Letter from Banten Governor to supply raw water, electricity and infrastructures;(iv) Land use agreement by Pelindo (v)Support Letter from PT PLN to supply 5MW of power (vi) BKPM approval to establish JV company.