Pertamina shortlists nine firms as potential partner for refinery project

Petromindo

State-owned oil and gas firm PT Pertamina said it has shortlisted nine companies as potential partner in the planned Bontang oil refinery project.

Pertamina said in a recent statement that the nine firms, with global and regional capacity in the oil and gas industry, were among of the 94 company participated in a February 2017 public expose for the Bontang refinery project. The nine met the qualifications set by Pertamina and would proceed to the next stages.

Pertamina Director of Petrochemical and Processing Megaproject, Rahmad Hardadi said in the statement that the company would select the would-be strategic partner following direct negotiation with the shortlisted candidates. He did not disclose the names of the firms in the shortlist.

The statement said that once the selection process has been completed, Pertamina and its strategic partner will immediately start the bankable feasibility study (BFS) process for the planned project, hopefully to be completed in 2018 along with setting up a consortium, and completing the first final investment decision to determine the initial investment estimate.

The planned Bontang refinery, to be located in East Kalimantan Province, will have a crude processing capacity of 300,000 bpd. In the initial phase, Pertamina aims to have a 5-25 percent stake in the project, with an option to increase the stake in the future.

The strategic partner is expected to play a role in providing the required crude and financing, and also has ability to market fuel products that are not absorbed by the domestic market to countries such as Australia, Papua New Guinea, New Zealand and the Philippines.

Pertamina has previously formed partnership with Russia?s Rosneft Oil Company to develop the Tuban refinery project in East Java, and with Saudi Aramco in the expansion of the Cilacap refinery in Central Java.

Editing by Reiner Simanjuntak