Pertamina picks Bontang as location for new refineries

State-owned oil and gas firm Pertamina has finally decided to pick Bontang, in East Kalimantan, as the location for the planned new refineries, shifting from the initial planned locations in Balongan, West Java, and Tuban, East Java, Kontan reported on Friday.

Pertamina Processing Director Chrisna Damayanto said that the shift was made as the price of land in Balongan and Tuban have jumped to levels no longer deemed rational as speculators set price from Rp 65,000 per sqm to Rp 3.6 million per sqm.

Chrisna said that Pertamina will use its own land of 1,800 ha in Bontang. He said that despite the shift in location, Pertamina is still optimistic that the construction of the new refineries would proceed well as planned.

Pertamina initially planned to build a 300,000 bpd refinery in Balongan in partnership with Kuwait Petroleum Corporation, and another refinery with similar capacity in Tuban in cooperation with Saudi Aramco Asia Company Ltd.

?We?re optimistic that the refinery project will be completed in 2018,? Chrisna said.(*)