MOSCOW (MRC) -- Indonesia's state oil company Pertamina expects to find a partner to take a majority stake in a proposed refinery to cost more than USD10 billion in Bontang, East Kalimantan, by April, said Hydrocarbonprocessing, citing senior company officials.
"This project is opened for traders, investment bankers and Indonesian companies," Rachmad Hardadi, director of megaproject and petrochemicals at Pertamina, told reporters, adding that it is estimated to cost USD10 to USD12 billion.
Pertamina expects to sign by a framework agreement by the end of April to build the 300,000-bpd refinery with the partner who could own up to 95 percent of the project, Iriawan Yulianto, a senior vice president for business development said.
Pertamina said in December that it aims to select a partner for the Bontang refinery by the end of 2017 and hopes to start construction at the end of 2019.
The refinery, to be completed in July 2023, will produce a minimum 60,000 bpd of gasoline and 124,000 bpd of diesel that meets the Euro V standard, Yulianto said.
Its fuel production will have to meet domestic demand before exports are allowed, he said.
Hardadi said the project may have excess diesel that could be exported to the Philippines, which is close to Bontang.
As MRC informed earlier, in May 2016, PT Pertamina and Russia’s Rosneft OAO signed a cooperation agreement that includes a plan to build a new oil refinery in the Southeast Asian nation.
Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).
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