Pertamina looks to acquire majority stake in Southeast Asian refinery
State-owned oil and gas firm Pertamina is planning to acquire 51% stake in a refinery in Southeast Asia, to meet the mounting demand for petroleum products in Indonesia.
The refinery processes 220,000 barrels of crude per day (bpd), and is expected to export fuel to Indonesian markets from early 2016.
Pertamina refineries director Rachmad Hardadi was quoted by Jakarta Post as saying: "If we are successful in the bid, we will be able to strengthen the fuel supply to Indonesia.
"The refinery will process crude produced by Pertamina's fields overseas and send the petroleum products to Indonesia."
The company operates six refineries, which currently process around 850,000bpd far below their expected capacity of one million bpd thus forcing the country to import petroleum products.
Consequently, Pertamina is upgrading four of its six refineries with an investment of $18bn.
The firm plans to build three new refineries in line with plans to boost its production capacity to 2.3 million barrels from the current one million barrels, reported Reuters.
"Our short-term plan is a five-year strategy. The company expects to achieve 1.795 million bpd of gasoline and diesel production by 2024.Pertamina is also looking to acquire refineries in Australia.
Our main focus is on the mid-and long-term strategy of upgrading current refineries and development of new grass root refineries," Hardadi added.
- Published on:
- May 20, 2015
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