7 Billion USD Refinery Megaproject, Pertamina Opens Opportunities for Funding Cooperation
Balikpapan, December 30, 2021 – PT Kilang Pertamina Internasional (PT KPI), the parent company of Pertamina's refineries and petrochemicals, continues to establish synergies with strategic partners to strengthen the National Strategic Project (PSN) funding scheme. One of the PSNs managed by PT KPI, the Balikpapan Refinery Development Master Plan (RDMP), has a project value of USD 7 billion. To optimize the Balikpapan RDMP funding strategy, PT KPI cooperates with banks including Bank Rakyat Indonesia, Bank Mandiri, Bank Negara Indonesia, State Savings Bank, Bank Syariah Indonesia to be involved in the Project Financing scheme.
The Director of Finance of PT KPI, Fransetya Hutabarat, stated that the funding scheme from the bank is an effective step for refinery and petrochemical megaprojects developments in Balikpapan. "Several banks have sent letters of interest and indicated the number of funds to be provided for this megaproject. PT KPI has carried out intense communication with the Association of State-Owned Banks (HIMBARA) and several foreign banks," explained Fransetya.
A strong investment scheme is carried out to support the sustainability of the Balikpapan RDMP, a refinery, and petrochemical megaproject. It aims to increase processing capacity from 260 thousand barrels per day to 360 thousand barrels per day. Considering that the Balikpapan RDMP is one of Pertamina's largest projects, a sustainable funding scheme is the company's focus to support the smooth running of the project.
To demonstrate the accountability of the Balikpapan RDMP project, HIMBARA and foreign banks who became lenders of the Balikpapan RDMP project were present to witness the project's important milestones, namely the installation of a regenerator in the RFCC unit.
On December 28, 2021, PT Kilang Pertamina Balikpapan (PT KPB) as the manager of the Balikpapan RDMP officially installed the Regenator on the RFCC unit. The President Director of PT KPB, Feri Yani, stated that the regenerator functions to regenerate catalysts that have reacted with hydrocarbons in the RFCC reactor. The regenerator is manufactured by Hyundai Heavy Industries Korea. The RFCC or Residual Fluid Catalytic Cracking is a unit in the refinery that plays a role in increasing the profitability of the refinery through processing residues into higher-value products.
The installation of a regenerator in the RFCC unit has contributed to Balikpapan RDMP's positive progress. In the 3rd week of December 2021, it has reached 46.24 percent. Feri Yani ensured the lenders that the entire construction process of the Balikpapan RDMP was carried out with strict HSSE standards.
PT KPB's efforts in accelerating project milestones follow the Balikpapan RDMP Project objective, which is to increase the processing capacity of the Balikpapan Refinery from 260 thousand barrels per day to 360 thousand barrels per day. In addition, the Balikpapan RDMP is projected to produce equivalent to Euro V products, which are more environmentally friendly. The revamping of the Balikpapan RDMP project is planned to improve crude processing (crude oil) flexibility, allowing it to handle sourer crude. The project, which is targeted to be on stream in 2024, will be one of Pertamina's biggest projects with the spirit to support the country's energy security.
Currently, PT KPI is also working on various strategic projects and opening up investment opportunities. There are 12 strategic projects, including the Cilacap Biorefinery, RDMP at an existing refinery, Petroleum To Pharmaceutical Project, West Java Petrochemical, and others. Pertamina, through PT KPI, welcomes the participation of external parties, both domestic and abroad, who are interested in becoming partners and financiers to support funding and development of projects in all Pertamina refineries. PT KPI is also committed to implementing these strategic projects promptly, with the right financing, with the correct specifications, and with the right results.**