Thursday, 22 Augst 2019 | 08:19 WIB

Pertamina Establishes Subsidiary to Manage Refinery in Balikpapan

Pertamina Establishes Subsidiary to Manage Refinery in Balikpapan (pertamina)

JAKARTA, NETRALNEWS.COM - PT Pertamina (Persero) has formed a new subsidiary named PT Kilang Pertamina Balikpapan. This subsidiary will be focused on managing the operations of the Balikpapan refinery when it is finished through the revitalization process or through the Refinery Development Master Plant (RDMP) project.

Ignatius Tallulembang, Director of Megaprocess of Processing and Petrochemical of Pertamina, said that the establishment of this new subsidiary is one of the important milestones in the development of refinery and petrochemical business and one of the targets that must be achieved in 2019.

"This is one of the important milestones and is our achievement target in 2019. This is our first step to start developing the Balikpapan refinery business," Ignatius said.

He said, the scheme in the Balikpapan project would later become a role model in the development of other Pertamina refinery projects. PT Kilang Pertamina Balikpapan is scheduled to partner with the company in the Balikpapan RDMP project.

"This is an example for business units that will follow later in the context of developing business to increase refinery capacity," he explained.

The Balikpapan Phase I RDMP project which will last for 52 months is expected to be completed in 2023 and will be carried out by a contractor consisting of the SK Engineering & Construction Co. consortium. Ltd., Hyundai Engineering Co. Ltd., PT Rekayasa Industri and PT PP (Persero) Tbk (PTPP) with a contract value of approximately US $ 4 billion.

Furthermore, the construction of phase I projects is aimed at increasing refinery capacity by 38 percent to 360,000 barrels per day with the results of BBM products that meet Euro V. specifications

The Balikpapan RDMP project is funded by Pertamina together with selected partners who will later join later through PT Pertamina Balikpapan Refinery.

"PT Pertamina Balikpapan Refinery will have a majority stake with a portion of 55 percent in the Balikpapan refinery while the partners will be 45 percent," he concluded.