PT Pertamina (Persero) and its partner, UOP LLC, a wholly-owned subsidiary of Honeywell, US based company, signed an agreement to conduct a Bankable Feasibility Study (BSF) for Refinery Development Master Plan (RDMP) in order to modernize Pertamina refineries.

BFS is partially funded by a grant from the United States Trade and Development Agency (USTDA) worth US$1,07 million. The RDMP will serve Pertamina in achieving company’s goal to become World Class Downstream Business.

President Director and CEO of Pertamina Karen Agustiawan said, Indonesia’s fuel consumption has experienced annual growth rate of 8% over the last 10 years amid the rising growth of economy of the country. Pertamina expects the trend will be continuing for 5 coming years with average annual growth leastwise of 5% per annum.

At the same time, domestic demand for petrochemical products is also expected to grow continuously due to increasing new centers of economic growth outside Jakarta, especially manufacturing sector. Indonesia’s petrochemicals market value is expected to be US$30 billion by 2018, and Pertamina targets to grab 30% of the market share.

“Pertamina needs to modernize its downstream infrastructure to meet the rising demand for energy and petrochemical products in Indonesia. The RDMP will strengthen national energy security and reduce our dependence on imports,” said Karen.

Pertamina operates 5 major refineries with total capacity of 1,035 milion barrels oil per day, the largest capacity in the South East Asia Region and the fifth largest capacity in the Asian Region. It is the comparative advantage of Pertamina to meet it’s target to become the main energy and petrochemical player in Indonesia and in the region.

UOP is a recognized global leader in refining and petrochemical technology and also the prime licensor of technologies for the refineries. UOP has been working with Pertamina for more than four decades. In the signed agreement, UOP will develop a master plan to upgrade Pertamina’s downstream assets.

About Pertamina
Pertamina in conducting business activities in the field of energy and petrochemicals, was divided into two sectors, namely upstream and downstream, and supported by the activities of Children's Subsidiaries and Joint Ventures.