PT Pertamina and Eximbank South Korea agreed to sign a US$ 1.5 billion Framework Agreement to support Pertamina's projects - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesian state-owned oil and gas corporation, PT Pertamina signed an US$1.5 billion framework agreement with the Export-Import Bank of South Korea, an official export credit agency. The signing of this cooperation was carried out by Pertamina’ Finance Director, Pahala N. Mansury and Eximbank CEO Eun Sung-Soo in Seoul, South Korea on Tuesday (07/02).

The fund is expected to support the modernization and construction of producer’ Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR) projects. It also marked Pertamina’ first framework agreement with a foreign export credit agency.

The company planned to double its production from one million barrels per day by 2026 and place a $30 billion order for new oil refinery facilities. The agreement sets supportable loan limits for major orders, and individual export transactions are quickly provided with financing in accordance with predetermined procedures.

He said the initiation of this cooperation was a follow-up to the cooperation that had been established previously with several partners from South Korea such as Hyundai Motor and the SK incorporated in the Joint Operation of the RDMP Balikapan EPC work.

“With this framework agreement, it is hoped that it will further facilitate cooperation involving other potential partners from South Korea, especially in the Balikpapan RDMP project,” said Mansyuri.

RDMP Balikpapan, the total cost is estimated at $4.6 billion, with completion projected for 2021. Then other projects RFCC Cilacap, in cooperation with Saudi Aramco with total cost of $5 billion and RDMP Balongan, is scheduled to be completed in 2023.

Meanwhile, the Dumai project in cooperation with Russian Rosneft, is set for 2024. And finally, GRR Bontang in 2025 with combined additional production capacity of 2 million barrels of oil per day by 2025.

Written by Willy Matrona, Email: