January 30, 2018 / 9:34 AM / in a year

UPDATE 2-Indonesia's Pertamina picks Oman's OOG, Cosmo Energy for $10 bln refinery

 (Adds comment from Cosmo, table)
    By Wilda Asmarini
    JAKARTA, Jan 30 (Reuters) - Indonesia's Pertamina           
appointed a consortium of partners to develop a new $10 billion
refinery at Bontang, said Ardhy N. Mokobombang, director of
refinery megaprojects and petrochemicals at the state-owned
energy company. 
    Indonesia, one of Southeast Asia's biggest fuel importers,
hopes to reduce its import bill by improving its ageing domestic
refining infrastructure, but some projects have been delayed
because of financing issues. 
    Pertamina hopes to soon finalise a framework agreement with
Oman's Overseas Oil and Gas LLC (OOG) and Cosmo Oil
International, a trading unit of Japan's Cosmo Energy Holdings
, to develop the Bontang facility, Mokobombang said on
    The Oman government will provide financial support for the
project, in which Pertamina expects to take an initial 10
percent stake, Mokobombang said. 
    Pertamina would have the rights to supply 20 percent of the
crude for the refinery, and Oman the remainder, he said. 
    Pertamina plans to reach a final investment decision on the
300,000-barrel-per-day Bontang grass roots refinery project in
mid-2020, he said. 
    "Hopefully in 2025 this refinery will be operational,"
Mokobombang told reporters. 
    A spokeswoman for Cosmo Energy Holdings in Japan said only
that the company has not made an investment decision on the
project yet.
    OOG is "active in the development of a number of energy
related projects," including a refinery project in Indonesia, it
said on its website. (bit.ly/2Ft54Gq)
    OOG could not be reached for comment. 
    Below is a table of Indonesia's refinery plans including
upgrades and new grassroots refinery developments.    
                                Additional     Targeted
                                 capacity     operational
 Project                          (bpd)*         date
 Balikpapan upgrade (stage 1)    100,000         2021
 Cilacap upgrade                  50,000         2023
 Balongan upgrade                140,000         2023
 Tuban (new)                     300,000         2024
 Dumai upgrade                   130,000         2024
 Bontang (new)                   300,000         2025
 Balikpapan upgrade (stage 2)      n/a           2025
 * Adds to existing national crude refining capacity of around 1
million bpd

 (Reporting by Wilda Asmarini in JAKARTA; Additional reporting
by Osamu Tsukimori in TOKYO; Writing by Fergus Jensen; Editing
by Tom Hogue)
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