JAKARTA (RambuEnergy.com) – Indonesian state-run energy company PT Pertamina has signed a cooperation agreement with the Korea Trade Insurance Corporation (K-Sure), a South Korean financial institution, in which the South Korean financial entity provides support to Pertamina’s oil refinery project in Balikpapan, East Kalimantan.
The cooperation agreement was signed by Pertamina’s President Director Nicke Widyawati and CEO K-Sure Lee In Ho. Nicke Widyawati expects the financial support will help Pertamina in the development of Balikpapan refinery upgrade project as well as other projects.
However, there is no detail as to how much K-Sure will provide funds or other financial facilities for the Balikpapan refinery project.
In early December last year, Pertamina has awarded the winner of the EPC for the RDMP Balikpapan project. The winner of the EPC is a consortium, consisting of SK Engineering & Construction Co. Ltd., Hyundai Engineering Co. Ltd., PT Rekayasa Industri and PT PP (Persero) Tbk. The EPC work is worth US$4 billion or around Rp57.8 trillion.
The upgrade project is designed to boost the capacity of the existing Balikpapan refinery from 260,000 barrels per day to 360,000 bpd.
Pertamina now expects the first phase of the project to be completed in 2023, delayed from the early plan of 2021. The second phase is expected to be completed in the following year (2022). (*)