Indonesian state-run oil and gas group Pertamina has decided to go ahead with the planned upgrade of its 125,000 bbl/d Balongan refinery in West Java (Indonesia), even without any partner.
The company, which planned to join forces with strategic partners to upgrade the facility, entered into an initial agreement with Saudi Arabia's national oil company Saudi Aramco in 2015, which expired in November 2016. Pertamina will thus upgrade the refinery alone, and may reduce investments in the refinery, depending on its financial conditions.
Pertamina aims to nearly double the capacity of its Balongan refinery, from the current 125,000 bbl/d to 240,000 bbl/d by 2020. The upgrade will be completed in two stages, with the first phase worth US$1.2bn to process medium crude with a sulphur content of 0.4-0.5%. In the second phase - where Saudi Aramco would still be invited to take part - Pertamina would seek to process sour crude and to improve competitiveness.
Pertamina is also considering inviting a partner to the upgrade of its 170,000 bbl/d Dumai refinery in Riau, which is not expected to be completed before 2024.
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