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Pertamina ready to work on the Bontang refinery project

Published by , Deputy Editor
Hydrocarbon Engineering,


PT Pertamina (Persero) and Overseas Oil & Gas (OOG) are committed to running the grass root refinery (GRR) project or the construction of a new refinery in Bontang. This commitment was marked in a Framework agreement between the two companies to build a 300 000 bpd refinery and Petrochemical in Bontang, East Kalimantan. 

OOG is a downstream oil and gas business services business from Muscat, Oman, which has a business scope of services including providing services in commercial structure (develop), design services with experienced personnel, construction management, project management, operation and maintenance support, and solutions engineering and construction. 

OOG was chosen as a partner, after passing the partner selection mechanism for Bontang GRR in January 2018. The OOG won the strategic partner status of several other competitors, to work on this project with Pertamina. 

Pertamina Corporate Communication Vice President Adiatma Sardjito said, after cooperation with OOG as the majority JV partner in Bontang GRR, Pertamina would get several benefits including optimising capital expenditure to carry out other refinery expansion and construction programs for example in Balikpapan, Cilacap, Balongan and Tuban . Petamina will also offtake fuel produced by GRR Bontang for domestic needs, especially gasoline, avtur, and LPG. 

"With the signing of the framework agreement with OOG today, we can advance to the next step, namely to conduct a Bankable Feasibility Study. This study will give us a better understanding of the technical configuration of the refinery and the economics of the project and recognise the risks that can be anticipated early on for timely project implementation, according to the budget, on specifications, on regulations, and achieve project economic targets, "explained Adiatma. 

The framework agreement will be valid for 12 months, after the framework agreement will be carried out with the Bankable Feasibility Study, then the Continuing Energy Study of the refinery project which is planned to be located near the Badak LNG Refinery.

Read the article online at: https://www.hydrocarbonengineering.com/refining/10122018/pertamina-ready-to-work-on-the-bontang-refinery-project/

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Downstream news Oil refinery news Asia Pacific downstream news