Indonesia's Pertamina to delay some refinery projects over financing

Indonesia's Pertamina to delay some refinery projects over financing

Pertamina plans to delay some refinery upgrades and a new project, including
ventures involving Rosneft and Saudi Aramco, due to financing issues, the
Indonesian state oil company said on Tuesday.

The delays will mean that Indonesia, which is one of South-east Asia's
biggest fuel importers, may have to ship in more oil products than
previously planned over the next decade.

Rachmad Hardadi, director of megaprojects and petrochemicals at Pertamina,
told reporters the timing of the targeted completions had been pushed back
to ensure that "the cost is not a burden over the same (one or two) years".

He said readjustments were needed so the projects fitted with upstream
acquisitions and infrastructure requirements.

Mr Hardadi said the completion of stage one of the Balikpapan project, which
is to boost the refinery's capacity to 360,000 barrels per day (bpd) from
260,000 bpd, would be pushed back to 2020 from 2019. Stage two, aimed at
improving fuel quality, would be delayed to 2021, he said.

Pertamina was awaiting a green light from the board of partner Saudi Aramco
for its plan to delay the completion of the US$5 billion upgrade of the
348,000 bpd capacity Cilacap refinery in Central Java to 400,000 bpd to 2023
from 2021, he said.

Pertamina also planned to discuss with its partner Rosneft on Wednesday
delaying the completion of the new Tuban refinery project to 2023-2024 from
2021, Hardadi said.

The new Tuban refinery, which will eventually be integrated with the TPPI
petrochemical refinery that Pertamina took over in late 2015, will have a
crude processing capacity of 300,000 bpd.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com