Pertamina signs agreement with Bechtel

State owned oil and gas firm PT Pertamina (Persero) has signed a Master Service Agreement (MSA) with American firm Bechtel Corporation in which the latter will provide Project Engineering Service (PSE) for the state firm?s refinery projects.

The agreement was among the US$20 billion deals recently signed by Indonesian and American firms during the visit of President Joko Widodo to the US.

Pertamina?s spokesperson Wianda Pusponegoro said in a statement the service to be provided by Bechtel include Bankable Feasibility Study (BFS), Basic Engineering Design (BED) and Front End Engineering Design (FEED). The result of the studies will be used as a basis for Pertamina to build new refineries and expand the capacity of its existing refineries.

Wianda said Becthel was chosen as its bid was considered the best of all during tender in technical and financial terms.

Becthel is a leading global firm for engineering, construction and project management in energy sector. In the oil and gas sector, Bechtel is known to have handled one third of LNG projects globally, 275 refinery expansion and modernization projects, 380 chemical and petrochemical projects scattered in 160 countries.

Editing by Johannes Simbolon