As part of the project, the company will upgrade refineries in Cilacap, Central Java; Balikpapan, East Kalimantan; Balongan, West Java; and Dumai, Riau.
Pertamina processing director Rachmad Hardadi was quoted by Tempo.co as saying that the upgrades are scheduled to be carried out until 2021.
"Indonesia’s consumption reaches 1.6 million barrels of crude oil per day."
The company intends to undertake the project in collaboration with strategic partners, and will be the majority stakeholder.
Earlier, Japanese firm JX Nippon Oil and Energy and Saudi Aramco have expressed interest to participate in the project.
The Balikpapan refinery upgrade is planned to be carried out in partnership with Japan’s JX Nippon Oil and a deal will be finalized in November, reported Jakarta Post.
The project is expected to increase the refinery’s production capacity to 360,000 barrels per day from the current 260,000 barrels per day.
Pertamina operates six refineries in Indonesia as well as in Kasim in West Papua and Plaju in South Sumatra.
Image: Balikpapan oil refinery in Indonesia. Photo: courtesy of Tropenmuseum / Drs. F.A.M. (Frans) Welman (Fotograaf/photographer).
