Tuesday, February 14, 2006

Pertamina might ignore Sinopec in Tuban refinery project

State-owned oil and gas company PT Pertamina seems can't wait too long to make decision on the US$1.1 billion refinery project in Tuban, East Java province. Six months after Widya Purnama, Pertamina's president director signed a memorandum of understanding (MoU) with Chen Tonghai, Sinopec's president in Beijing, Pertamina stated today that it might invite other investors to build the refinery. Sinopec was considered too slow to make its mind.
Pertamina director Suroso Atmomartojo said if China's Sinopec can't make decision, Pertamina would invite other investors to build the refinery which could produce 150,000 to 200,000 barrels per day.
Indonesia desperately needs new refinery to catch up the increasing domestic demand. Currently Pertamina operates several refineries with combined capacity of 1 million barrels per day. No additional capacity built in the last decade.
In the meantime, starting tomorrow Pertamina will shutdown Balongan Refinery for up to 20 days of maintenance. The refinery, located in Balongan, West Java is capable to produce 150,000 barrel per day.




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