Pertamina signs MoUs with global firms on refinery projects

Following a one year of road show to seek strategic partners, state-owned oil and gas firm PT Pertamina finally signed on Wednesday MoUs with three global oil and gas firms for the upgrade and capacity expansion of five oil refineries in Indonesia that is expected to require total investment of US$25 billion in 10 years.

Pertamina said in a statement the MoUs were signed with Saudi Aramco, China Petroleum & Chemical Corp, and JX Nippon Oil & Energy Corp.

Pertamina said it would team up with Saudi Aramco for the upgrade and capacity expansion of the Dumai, Cilacap and Balongan refineries; with China Petroleum & Chemical Corp for the Plaju refinery; and with JX Nippon Oil & Energy Corp for the Balikpapan refinery.

The projects, expected to be fully completed in 2025, will bolster the combined capacity of the refineries in processing crude oil to 1.68 bpd from the current 820,00 bpd, Pertamina said.

In details, production capacity of premium gasoline will increase by 3.3 times to 630 bpd from 190,000 bpd; automotive diesel by 2.4 times to 770,000 bpdfrom 320,000 bpd; and jet fuel to 120,000 bpd from 50,000 bpd.

Petrochemical products to be produced include polyethylene,propylene, polypropylene, and paraxylene.

Following the signing of the MoUs, Pertamina and the strategic partners will form joint teams to evaluate the feasibility of the projects including financing and marketing plans.

The front end engineering designs are expected to be completed between 2015 and 2016.

Editing by Reiner Simanjuntak