Indonesia Balikpapan refinery

Pertamina eyes sour crude resources

JAKARTA, December 14, 2017 – Pertamina is making a move to modernise three of its refineries in 2018, local media reported Thursday.

The upgrades would see the facilities transformed to process sour crude resources, the Jakarta Post reported. Facilities slated for modernisation include the Balongan refinery in West Java, the Cilacap refinery in East Java and the Balikpapan refinery in East Kalimantan. According to Pertamina’s refinery director, Toharso, works on the Balongan refinery are slated to begin in mid-2018.

 

The facilities were originally designed to accommodate sweet crude with sulphur content measuring around 0.2%.

“We have been importing sweet crude oil from the African market, which requires around 26 days to ship,” Pertamina senior vice-president for integrated supply, Toto Nugroho said. “After the upgrades, we can import sour crude oil from Saudi Arabia, Iraq or Iran, which have shorter [shipping] distances and are less costly.”

Crude imports are forecast at around 350,000 bopd in 2018, the report added.

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