PT Pertamina and a consortium of South Korean companies signed a memorandum of understanding to examine the business opportunities in Indonesia' oil and gas industry, specifically in the Refinery Development Master Plan of Dumai in Riau - Photo By Special

JAKARTA (TheInsiderStories) – Energy producer, PT Pertamina and a consortium of South Korean companies signed a memorandum of understanding to examine the business opportunities in Indonesia’ oil and gas industry, specifically in the Refinery Development Master Plan (RDMP) of Dumai in Riau. The signing was carried out online witnessed by head of the Investment Coordinating Board Bahlil Lahadalia on May 20.

The state construction firm, PT Nindya Karya also involved in the deal. According to the agency, the Korean consortium was represented by DH Global Holdings Co. Ltd., a holding company involve in financial business.

“The project with a value of US$1.5 billion its expecting can increase domestic oil and fuel production capacity and it will reduce the dependence on Indonesian oil imports and are expected to be able to overcome the current account deficit in the future,” said Lahadalia in an official statement released on Thursday (05/21).

The deal also inline with the government efforts to support the acceleration of the implementation of the mega project in the National Strategic Projects, as stated in Presidential Regulation Number 56 of 2018.

“The government together with Pertamina will help to facilitates and ensure the project can run safely. Once the signing is done, we can immediately enter the period of acceleration. We will also help with fiscal incentives and licensing. We will help this project,” he continued.

Pertamina’ director, Ignatius Tallulembang added, the third parties will conduct an upgrading study on the Dumai Refinery. Its expecting that in December 2020 there will be an important milestone that can be achieved, he explained.

While, chairman of DH Global Holdings, Jung Sam Seung stated, this agreement is the first step and foundation for the completion of the RDMP project. Pertamina aimed to increase refinery capacity to 2 million barrels per day on the modernization and construction of RDMP and Grass Root Refinery (GRR) from currently around one million barrels a day.

To reach the world-class standard, the producer wants to increase refinery capacity through the construction of four RDMPs and two GRRs as well as integrating them into petrochemical plants to develop new businesses with the support of reliable human resources, the latest world-class technology.

RDMP and GRR mega project, its expecting will simultaneously increase the ability to process crude from sweet crude to sour crude with a sulfur content of around 2 percent. In addition, increasing Yield of Valuable to around 95 percent from the previous 75 percent.

The refinery will produce environmentally friendly fuel products of the Euro5 standard and Petrochemical products ranging from 6,600 Kilotonnes Per Annum (KTPA) from the previous 600 KTPA so that it can significantly reduce imports of petrochemical products.

With the presence of these two large projects, the energy holding firm to be able to increase oil production so that 100 percent meet national energy needs and support the growth of the petrochemical industry and strengthen Pertamina’ downstream business.

Written by Staff Editor, Email: theinsiderstories@gmail.com