JAKARTA (TheInsiderStories) - Diversified state owned energy company PT Pertamina said it will launch tender to find partner to develop the New Grass Root Refinery (NGRR) Bontang at end of February.
“The project expose of Bontang refinery will be started at end February. Our hope is that in April we can find a strategic parter and set up a joint venture,” Rachmad Hardadi, director for megaproject for processing and petrochemical of Pertamina was quoted as saying by detik.com in Indramayu, West Java on Thursday.
Pertamina hopes to announce a partner to develop the refinery project by end of April.
It said unlike Tuban refinery, Pertamina will not require the partner or partners to supply crude oil as a requirement. The supply of oil can come from anywhere.
Pertamina also hopes that there will be a local partner that will join in the JV. Pertamina expects there will be more than one partner in developing the NGRR Bontang.
Rachmad said in the NGRR Bontang project, Pertamina is willing to only hold 20-25% stake and 755 by strategic partner or partners.
Pertamina estimates the cost to develop NGRR Bontang could reach USD8-10 billion, lower than the cost to develop NGRR Tuban at between US$12-15 billion. As for NGRR Tuban, Pertamina has set up a JV with Russian giant oil and gas firm Rosfnet.
On Thursday, Pertamina also officially started the construction of submarine pipeline (SPL) and single point mooring (SPM) at its Refinery Unit (RU) VI Balongan, Indramayu West Java with total investment of Rp1.79 trillion.
The groundbreaking of the project was witnessed by the State Owned Enterprise Minister Rini soemarno and Energy and Mineral Resources Minister Ignasius Jonan.
The SPL and SPM facilities are developed as part of Pertamina’s efforts to smoothen the delivery of crude oil to the RU VI Balongan refinery from tanker vessels. (*)