24-6-2023 (JAKARTA) Indonesia’s state energy company, Pertamina, has finalized a $3.1 billion financing agreement with multiple export credit agencies and commercial banks to support the upgrade of its Balikpapan refinery, according to an announcement made on Saturday.
The financing package involves export credit agencies from South Korea, Italy, and the United States, along with 22 commercial banks, as stated by Pertamina in a press release.
The funds will be utilized for the expansion of the Balikpapan oil refinery, increasing its capacity from 260,000 barrels per day (bpd) to 360,000 bpd. Following the upgrade, the refinery will have the capability to produce fuel meeting the Euro V emission standards, contributing to a more environmentally friendly production process, as highlighted by Pertamina spokesperson Fadjar Djoko Santoso.
The construction progress of the Balikpapan project currently stands at approximately 74% completion, according to Feri Yani, the president director of Kilang Pertamina Balikpapan, the subsidiary responsible for the refinery.
This initiative is part of Pertamina’s long-term refinery investment blueprint, initially outlined in 2015, which aims to nearly double the company’s total processing capacity to 1.5 million bpd.
Earlier this year, Pertamina’s refinery group CEO stated that the company is adjusting its expansion plans to align with the global shift towards a greater reliance on renewable energy sources.
