Balongan unit to resume operations next month<\/p>\n
JAKARTA (JP): The catalytic cracking unit of the state oil and
\ngas company Pertamina's refinery in Balongan, West Java, is
\nexpected to resume operation early next month after almost a
\nmonth-long stoppage.<\/p>\n
The residue catalytic cracking (RCC) unit, which produces
\nliquefied petroleum gas (LPG) and Premium, Super TT and Premix
\ngasoline, ceased operation May 11 due to technical failures.<\/p>\n
Designed with a processing capacity of 125,000 barrels per
\nday, has another production unit, the refinery has another crude
\ndistillation unit (CDU). This remains in operation to produce
\nnaptha, kerosene, automotive diesel oil and low sulfuric wax
\nresidue (LSWR).<\/p>\n
"We hope the RCC unit will resume operation early next month,"
\ncompany processing director Samto Utomo told The Jakarta Post and
\nBisnis Indonesia.<\/p>\n
The US$2.4 billion Balongan refinery has attracted unwanted
\nmedia attention due its repeated production problems.<\/p>\n
Its RCC unit is guaranteed by its designer, U.S. designing and
\nengineering company Universal Oil Product, to be able to operate
\nfull time for two years before a 40-day break.<\/p>\n
But the unit has twice experienced mechanical failures over
\nthe past four months even though its last periodic break was in
\nFebruary 1997.<\/p>\n
Sources at Pertamina attribute the repeated failures to
\nsubstandard construction. They said Pertamina officials used low
\nquality construction materials but marked up prices to meet the
\nproject value of $2.4 billion.<\/p>\n
"We hope the Attorney General's Office will investigate the
\ncorruption at the refinery," the sources said.<\/p>\n
They estimated the actual cost of the refinery at less than
\n$1.9 billion.<\/p>\n
Minister of Mines and Energy Kuntoro Mangkusubroto has ordered
\nPertamina to conduct technical auditing of the refinery.<\/p>\n
Samto said Pertamina was currently reexamining the RCC unit's
\ndesign together with Universal Oil and the British Petroleum.
\n(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/balongan-unit-to-resume-operations-next-month-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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