JAKARTA, Indonesia--PT Pertamina has signed an agreements with
three foreign partners to spend $25 billion over the next four
years to double capacities at three refineries.
The three partners--Saudi Aramco, Japan's JX Holdings, and
China's Sinopec Pte Ltd --will help the Indonesian state-owned oil
and gas company boost the total capacity of the Cilacap, Balongan
and Balik Papan refineries to 1.68 million barrels per day, said
Pertamina's Chief Executive Dwi Soetjipto.
Pertamina's total refining capacity is currently around 1.05
million barrels/day, but the daily utilization is around 700,000
barrels as some refineries are old.
Indonesia needs to import fuel to meet the shortfall in its
daily domestic consumption, which ranges between 1 million and 1.5
million barrels.
The government has been also mulling plans to build a new
refinery to help reduce petroleum fuel imports as domestic
consumption is expected to continue rising, driven by healthy
economic growth.
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