PT Pertamina (Persero) started the licensor selection process for the Refinery Development Master Plan (RDMP) RU IV Cilacap and New Grass Root Refinery (NGRR) Tuban project which both are targeted to come on stream in late 2021.

Director of Refinery and Petrochemical Megaproject Rachmad Hardadi said in accordance with the schedule, the current licensor selection process for RDMP RU IV and NGRR Tuban is on going to get the technology determined by economics and reliability. This process, he said, is determining the execution timing of the next process namely the Front End Design (FEED) and construction (EPC).

"As is known, Pertamina has been determined to meet the high-attention market challenges of clean environment, on the other hand Pertamina will continue to strive to be more competitive and compete. Thus, the reliability and economics of the project technology become a demand so the capable role and internationally recognized licensor will be very important for this project, "said Hardadi.

A total of 30 companies will compete to be the licensor on the NGRR Tuban project. Meanwhile, the licensor position on the RDMP RU IV Cilacap project are contested by 15 companies.

Pertamina and the partners will follow a detail and comprehensive selection process in selecting the most appropriate technology for GRR Tuban & RDMP Cilacap. In conducting this selection process, Pertamina is assisted by consultant who have international reputation. "All decisions taken is the decision of Pertamina and partners," he said.

President Director of Pertamina Dwi Soetjipto said the progress made today is increasingly showing Pertamina’s concrete measures to build new refineries. Based on the schedule, the licensor selection to RDMP RU IV Cilacap is targeted for completion by the end of first quarter of 2017, while NGRR Tuban completed by the end of second quarter of 2017.

Pertamina is currently on going the completion process of the Bankable Feasibility Study (BFS) and EIA implementation of NGRR Tuban which targeted to be completed on June 2017. Meanwhile, the RDMP RU IV Cilacap project is on the completion process of Basic Engineering Design (BED) which targeted on March 2017, while the EIA is on July 2017.

"RDMP RU IV Cilacap will conduct the groundbreaking in the fourth quarter, while NGRR Tuban groundbreaking will be held in the third quarter, and the fastest groundbreaking is RDMP RU V Balikpapan which started in the first quarter of this year. It means, the work is able to start this year and thus, Pertamina’s refinery development project will be more concrete, "said Dwi.

RDMP RU IV Cilacap will increase its refinery processing capacity by 15% to 400 thousand barrels per day. However, with a higher Nelson Complexity Index, RU IV Cilacap later can increase the gasoline production by 80 thousand barrels per day, diesel by 80 thousand barrels per day and extra for Aviation fuel by 30 thousand barrels per day.

RDMP RU V Balikpapan increase its processing capacity by 38.5% to 360 thousand barrels per day with the respective production increased by 80 thousand barrels per day of gasoline, 70 thousand barrels per day of diesel and 30 thousand barrels per day of Aviation fuel. Meanwhile, NGRR Tuban which have processing capacity of 300 thousand barrels per day will produce 90 thousand barrels per day of gasoline, 100 thousand barrels per day of diesel and 30 thousand barrels per day of Aviation fuel.

"All of its production will be Euro 5 or higher from the current market demands (Euro 4)," said Rahmad Hardadi.

About Pertamina (Persero)

Pertamina is Indonesia’s leading integrated energy company. We are committed to an ongoing process of transformation and continuous improvement with the objective to achieve global standards of operational, environmental, and corporate performance. Our businesses include exploration and production (oil and gas), refining, manufacturing and marketing of oil products and petrochemicals. We are also engaged in the development of biofuels, geothermal power and other sustainable alternative energy sources.