Pertamina to change crude for Balikpapan refinery

State owned oil and gas company PT Pertamina plans to use sour crude rather than sweet crude at its Balikpapan refinery in East Kalimantan to boost margin.

 

Sweet crude is higher in terms of quality than sour crude since the former has lower sulphur content. The former is however more expensive than the latter.

 

Pertamina’s Processing Director Suroso Atmomartoyo told reporters during a workshop in Balikpapan on Thursday that most of oil reserves found in the world are of sour type.

 

“ Middle East alone has sour crude reserves that can last for another 50 years,” Suroso said.

The Balikpapan refinery is now fed with sweet crude. Pertamina has to modify the refinery so that it could use sour crude.

 

Suroso refused to specify the amount of investment needed for the modification as well as the source of the funds.

 

“Let’s not talk about the financing for the moment. Based on our plan, the modification will take three to four years to complete. Thus, the project is expected to be completed in 2012,” he said. (Godang)