Pertamina, South Korea?s SK study $1b expansion of Dumai refinery

Indonesian state oil and gas company PT Pertamina and South Korean chemical and refinery firm SK Corp. are studying a possible cooperation to expand the oil processing capacity of Dumai refinery in Riau from 120,000 barrels per day (bpd) to 170 bpd.

Pertamina?s president Ari Soemarno, who talked to reporters after attending the South Korea-Indonesia mining and energy meeting, said on Monday a feasibility study for the project was expected to start in January 2007.

He estimated the investment needed for the project at US$1 billion.

If realized, the project would become the second to be undertaken by a joint venture between Pertamina and SK since the middle of this year. In April this year, both firms signed a JV agreement to build a $175 million Group III base oil plant at Pertamina?s Dumai refinery complex with the capacity of 7,250 BPD.

The JV is preparing to start the construction of the base oil plant, Pertamina?s processing director Suroso Atmomartoyo said on Monday. (Godang)