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Saturday, April 18, 2020

Positive Pertamina Refinery Progress



PT Pertamina (Persero) continues to record positive progress to complete the construction of a national refinery to meet the targets set. The project, known as the Refinery Development Master Plan (RDMP) and Grass Root refinery (GRR) megaprojects, continues to be accelerated to pursue national energy security and independence, which is marked by the stop of imports of fuel oil (BBM) in 2026.


Fajriyah Usman

    Pertamina Corporate Communication Vice President Fajriyah Usman stated, the RDMP and GRR megaprojects showed very significant developments at each stage of development. The East Kalimantan Balikpapan refinery, up to the quarter 1-2020, has reached 15.02 percent, and by the end of this year it is targeted to reach 40 percent.

Meanwhile, the Balongan Refinery in West Java and the Cilacap Refinery in Central Java are each targeting 10 percent this year and will continue to be accelerated according to the target stages of development. In the context of acceleration, Pertamina has carried out a number of works, such as jetty construction, site development, workshop and warehouse construction, construction of laboratory buildings and Health, Safety, Security and Environment (HSSE), as well as other supporting facilities, "said Fajriyah Usman
Fajriyah explained, Pertamina had also completed the procurement of the main equipment, which took a long time to ensure the project went on target. At present the main equipment is in the process of making or manufacturing. In addition, negotiations with business partners and investors also continued well.



A number of memorandum of agreement and business agreements have been signed between Pertamina and various parties, such as The Abu Dhabi National Oil Company (ADNOC), Mubadala




Rosneft, K-Sure, and so forth. Including negotiations with Saudi Aramco also continues which is targeted to be completed by the end of April 2020.



Balongan RDMP Project, divided into three Phases. The Balongan Phase 1 RDMP development is currently in the Dual FEED Competition (DFC) stage with two consortia, namely the RRE Consortium (PT Industri Industri, PT Teknik Engineering, and PT Enviromate Technology International) and the JSW consortium, including J GC Indonesia, PT Synergy Engineering, and PT Wijaya Karya.

This process is targeted to be completed in May 2020. For Phase 2, a Feasibility Study is currently underway and the ARDHM Unit Revamp Study is currently underway. While for Balongan RDMP Phase 3 (New Refinery and Petchem Complex West Java), the Feasibility Study will be conducted with partners and are in the location and land acquisition.

Progress of Balongan Phase 3, currently in the process of procurement of land and partnership, namely Pertamina and ADNOC have signed a Memorandum of Understanding (MOU) for the development of the Petrochemical Integrated Complex in Balongan, West Java. The Plaju refinery is currently entering into a BED Licensor procurement, and is starting the BED Work. Meanwhile, Dumai RDMP is in the stage of conducting a Bankable Feasibility Study (BFS) revisit tender.

"Meanwhile, Tuban GRR has been completed with the land acquisition process and is in the process of payment. Pertamina and Rosneft have even signed a Tuban Refinery design contract with selected contractors on October 28, 2019. At present the Basic Engineering Design (BED) and Front End Engineering Design (FEED) have begun.

Land Clearing progress has reached 90.08 percent and restoration progress has reached 46.40 percent. The progress of General Engineering Design (GED) has reached 6.22 percent.

"With the support of all parties, the construction of the refinery is expected to run smoothly and be completed according to the targeted time so that we can be sovereign energy," said Fajriyah.

When the COVid - 19 pandemic that hit the world, Pertamina delivered the good news of oil and gas production in the first quarter of 2020 which recorded an increase of two percent compared to the average production in 2019.

Pertamina Upstream Director, Dharmawan Samsu stated, oil and gas production in the first quarter of 2020 recorded 919 million barrels of oil equivalent per day (MBOEPD), an increase of two percent compared to the average production in 2019 of 901 MBOEPD.

In detail, oil production averaged 421 thousand barrels per day (MBOPD), while gas production reached an average of 2,887 million standard cubic feet per day (MMSCFD).

"By adjusting work systems and personnel to anticipate the Covid-19 pandemic, Pertamina is still working to keep oil and gas production in line with the targets in the RKAP. Until now, it has reached 99 percent of the target, "said Pertamina Upstream Director, Dharmawan Samsu.

Dharmawan added, positive performance also came from oil and gas field operations operating abroad through a subsidiary of PT Pertamina International EP (PIEP) which successfully contributed oil and gas production by 156 MBOEPD or 103 percent of the 2020 Quarter-1 target.

"This increase in production is mainly from field performance in Algeria," Dharmawan said.

Republika, Page-9, Wednesday, April 9, 2020

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