The Indonesian state-owned energy company Pertamina has reached financial close for its Balikpapan oil refinery expansion project, located on Borneo and which will see its capacity increase by 100 kb/d from 260 kb/d to 360 kb/d. Financial close was achieved after Pertamina reached a US$3.1bn financing deal with export credit agencies and commercial banks. The lenders notably include export credit agencies from South Korea, Italy and the United States, as well as 22 commercial banks. The Balikpapan refinery will also be able to produce fuel with Euro V emission standards after the planned upgrade.
The project is part of Pertamina's long-term refinery investment blueprint, a 2015 plan intended to bring the company’s total processing capacity to 1.5 mbl/d. As of 2022, Pertamina owns 6 Refinery Units with a total capacity of about 1.05 mbbl/d. Its refinery production reached 314 mbl in 2022, a 6% increase from 2021. At the national level, Indonesia’s refining capacity stood at 1.15 mbbl/d at the end of 2021.