Respond President's Directions, TPPI Pertamina Refinery OSBL Progress On Track 98%
Jakarta, November 30, 2021 - Pertamina together with PT Trans Pacific Petrochemical Indotama (PT TPPI) continues to oversee the management of the aromatic refinery project in Indonesia to reduce imports of petrochemical derivative products. The main aromatic products produced by TPPI are Paraxylene, Benzene, Orthoxylene, and Toluene. One of the ongoing project stages, namely Outside Battery Limit (OSBL) shows the progress that is on track at 98% until November 2021. The project stages which are included in the aromatic revamping activity have a project value of IDR 379.75 billion.
As mentioned by the Corporate Secretary of PT KilangPertamina Internasional (PT KPI), Ifki Sukarya, the OSBL stage includes the construction of 5 tanks. "These five tanks function to support the Inside Battery Limit (ISBL) facility in maximizing Paraxylene production from 600 thousand to 780 thousand tons," explained Ifki Sukarya. Ifki continued that with positive OSBL progress at 98%, PT TPPI will carry out a ceremonial inauguration process in December 2021 to mark the momentum for the completion of these stages.
Ifki emphasized that the finalization of the OSBL stage is an important stage of the entire aromatic revamping process. “With the finalization of the OSBL stage, we will continue this project by increasing our platforming capacity from 50 thousand barrels per day to 55 thousand barrels per day. To achieve this goal, we modified the heater, CCR unit, and distillation column tray," said Ifki Sukarya.
Responding to the President of the Republic of Indonesia's direction regarding the acceleration of the TPPI refinery project, Ifki Sukarya stated that Pertamina and TPPI had made strategic efforts. The success of Pertamina and TPPI in overseeing the OSBL project is due to several factors. “The progress of this OSBL project is very good because of the strong Engineering, Procurement, and Construction (EPC) contract system. Moreover, we ensure that there is a clear definition of the Scope of Work (SOW) of the project so that there is no chance of a Change Order occurring during the course of the project," explained Ifki Sukarya. The management of relationships with contractors is also a major factor in the on-time completion of OSBL. "TPPI continues to ensure the conduciveness of project work by providing the assistance needed by contractors in the EPC stage," explained Ifki Sukarya.
Ifki further explained that the implementation of the principles of Good Corporate Governance (GCG) was carried out consistently throughout the OSBL stages. “The Pertaminacontractor screening process is carried out continuously while still paying attention to corporate governance and GCG. Sources or databases of potential partners are obtained both from Pertamina's internal database and prospective partners who submit letters of interest to us," explained Ifki.
In the effort to increase the probability of getting a strategic partner, Pertamina in parallel explores several business schemes which are expected to provide equal benefits, and fair risk allocation between Pertamina and potential partners, especially for long-term business sustainability.