Review RDMP Balikpapan Construction Progress, Minister Jonan: RDMP Development Expected Customer Focus

INDUSTRY.co.id - Balikpapan - The Minister of Energy and Mineral Resources (EMR) Ignasius Jonan confirmed that the Balikpapan refinery development master plan (RDMP) development project was built to meet the needs of the community.

"Since the Balikpapan RDMP is a big investment, Pertamina will now have to educate the community if this project is needed, so when it is finished, you (Pertamina) are ready," said Jonan when reviewing directly to the RDMP Balikpapan development site on Thursday (26/4) / 2018).

Jonan's main concern is customer focus. Jonan does not want the project with a value of about Rp 68 trillion is precisely not in accordance with their needs.

"The service pattern is shifting now, and oil and gas companies should no longer produce what they can, but what consumers need more," he said.

The development of the PDMP will be able to increase the refinery capacity to 360 thousand barrels per stream day (bpsd) from 260 thousand bpsd, to increase the production of Gasoline Euro V by 100 thousand barrels per day (bpd), 30 thousand bpd of diesel, and Liquified Petroleum Gas LPG) of 930 tons per day (tpd).

The project will also increase local content by 30% or when converted to approximately US $ 1.5 billion. When running as planned can boost Gross Domestic Product (GDP) up to US $ 1.6 billion.

On this occasion, Pertamina said in October 2018 there will be a winner of Engineering Procurement Construction (EPC) which is currently followed by four consortiums.

"The EPC contractor will begin October to be signed, Progress will continue for the main plant, in October there will be an award winner," said Task Managing Director of PT Pertamina Nicke Widyawati.

With duration of 43 months project, Pertamina believes that Balikpapan RDMP will be fully operational by 2022.

On the other hand, SVP Project Excellation Pertamina, Ignatius Tallulembang explained that the existence of Balikpapan RDMP will increase the independence and energy security and support the development of national industry by increasing the production of BBM, non fuel and petrochemical as well as improving the quality of fuel equivalent to Euro V and the value of Pertamina refinery economy.

Another positive impact of this project development is being able to absorb an additional labor force of 20,000 - 25,000 people during construction of the project and 2,500 when the refinery is operated.

Currently, Pertamina is targeting 5,000 local worker candidates in cooperation with the Ministry of Manpower of the Republic of Indonesia and the Government of East Kalimantan Province. "We have one generation for us training," explained Tallulembang.

To expedite the project, Pertamina is holding an international consultant or Project Management Consultancy (PMC). "We are also preparing PMC International to oversee this work," added Tallulembang.