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Pertamina starts FEED of Balikpapan Reninery Unit V

JAKARTA (RAMBUENERGY.COM) – PT Pertamina, state owned energy company, has on Thursday (Sep 8) started the Front End Engineering Design (FEED) for the Balikpapan Refinery Unit V project, which is part of the Refinery Development Master Plan (RDMP).

Pertamina said in a statement that the phase I and phase II of the FEED process will be done internally by the company.

Director for Processing of Pertamina Rachmad Hardadi said at the kick off meeting for the FEED process said that Pertamina needs to take unusual path in order to realize the project within three years.

Last July, Pertamina started the Basic Engineering Design (BED) for the RDMP Unit V Balikpapan with a target to complete in 2017. The FEED and BED will be carried out in parallel process, Rachmad said.

Under normal process, FEED is carried out after BED is completed. However, in the case of the Balikpapan refinery project, Pertamina carried out the two process at the same time in order to speed up the process.

Therefore, the physical construction of the project can be started in 2017 and completed in September 2019.

Following is the timeline of the project:

– Licensor Management: Jan. 9, 2017
– FEED Revamp old Units (crude distillation unit, vacuum distillation): March 15, 2017
– FEED licensed unit in new units such as Diesel and Kerosene Hydrotreaters, Platformer, Continuous Catalytic Reformer, Gasoline Selective Hydrotreaters, Alkylation, as well as Residual Fluid Catalytic Cracker (RFCC): June 30, 2017
– Capital Expenditure Estimation: July 15, 2017.

To complete the FEED, Pertamina is cooperating with Bechtel International to develop the six new units as well as CDU and VDU. Bechtel will also develop refinery infrastructure.

The FEED-related works will be carried in three locations or offices of Bechtel, namely Houston, London and New Delhi. Pertamina will send 80 engineers to the three locations. This means to develop the Balikpapan refinery unit, Pertamina deploys a total of 200 engineers.

“This is part of Pertamina’s efforts to develop knowledge, competency and capacity of local engineers, not only for RDMP RU V Balikpapan, but also for other refineries,” said Hardadi.

Six Refineries
Pertamina is in the process of developing six mega refineries, comprises of four RMP projects, namely RDMP RU V Balikpapan, RDMP RU IV Cilacap, RDMP RU II Dumai, and RDMP RU VI Balongan and two new refineries, namely Grass Root Refinery (GRR) Tuban and GRR Bontang.

According to Hardadi, RDMP is two-three times more difficult than developing new refineries which are already in operation as Pertamina has to relocate warehouses, workshop areas, residential area and developing new warehouses and residential area.

Currently, Pertamina is developing flats comprising of 300 units and 23 floors, which is carried out by PT Pembangunan Perumahan Tbk. (*)

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