TPPI resumes operation of Tuban refinery

Petrochemical firm PT Trans Pacific Petrochemical Indotama (TPPI) resumed on Sunday the operation of its refinery in Tuban, East Java, after obtaining the necessary supply of condensate from state-owned oil and gas firm PT Pertamina, reports said on Thursday.

Ali Mundakir, Vice President of Corporate Communications at Pertamina, said that the refinery, which has a capacity of 100,000 barrels per day, for now only runs at limited capacity of 20,000 bpd, but would gradually be increased to reach the maximum capacity.

Pertamina, which has taken over the management of TPPI since October 2012 after it failed to repay debts to the state company, gets the required condensate supply from the Senipah field.

Reports also said that the upstream oil and gas authority SKK Migas has decided to allocate the state?s portion of the country?s condensate production to be processed at refineries belonging to Pertamina. Condensates which could not be processed at Pertamina will then be handed over to the TPPI refinery.

TPPI will get a fee for processing the condensate, while Pertamina is responsible in marketing and selling the end output. (*)