Investors invited to produce lube oil in joint venture<\/p>\n
JAKARTA (JP): Pertamina state oil company is inviting foreign
\nand domestic investors to set up joint ventures to produce
\nsynthetic lubricating oil domestically.<\/p>\n
"The synthetic lubricant business is very promising in the
\ncountry not only because demand for high-quality lubricants is
\nnow on the rise, but also because raw materials can be easily
\nimported without restrictions," the company's president Faisal
\nAbda'oe said yesterday.<\/p>\n
Speaking at a ceremony to launch the maiden sales of
\nPertamina's new lubricating oil, Mesran F-1 Full Synthetic, at
\nits headquarters, Abda'oe said the government is urging the
\nsetting up of joint ventures for producing lubricating oil for
\nexport.<\/p>\n
"We have thus far made a joint venture with Mobil Oil of the
\nUnited States for producing Mesran F-1 Full Synthetic, which is
\nintroduced today," he said.<\/p>\n
The new lubricant is made from non-hydrocarbon oil, which is
\nmixed with various chemical substances, including ether.<\/p>\n
Abda'oe said both parties spent around US$100 million for
\nestablishing a lubricant blending plant in Tanjung Priok, North
\nJakarta, with an initial output capacity of 200,000 kiloliters a
\nyear.<\/p>\n
"Pertamina and Mobil Oil also have agreed to set up other
\nblending plants in Surabaya, Ujungpandang and Medan," he said.
\n"But the establishment of the three plants is still open to other
\nparties interested."<\/p>\n
He told The Jakarta Post that Pertamina is committed to
\ncontrolling around 70 percent of the shares of the planned
\nventures.<\/p>\n
He said several investors have shown interest in the planned
\nSurabaya plant, which may need an investment of $100 million.<\/p>\n
Crude oil<\/p>\n
Abda'oe said Pertamina prefers synthetic materials for the
\nproduction of lubricants in order to reduce the use of crude oil
\nfor domestic purposes even though the raw materials are still
\nimported from the United States and France.<\/p>\n
Legowo Dradjad, Pertamina's junior director for domestic
\nmarketing and procurement, claimed that the quality of synthetic
\nlubricating oil is the same as crude oil-based lubricants as
\nshown by the result of laboratory research at Mobil Oil.<\/p>\n
"Studies indicate that synthetic lubricants are suitable for
\ncars made in the 1990s," he told reporters.<\/p>\n
He pointed out that the preliminary results of road tests in
\nthe United States showed that Mesran F-1 Full Synthetic can be
\nused for running engines for over 10,000 kilometers.<\/p>\n
"The price of the new lubricant is also less expensive than
\nimported lubes, such as Motul, Valvoline and Castro," he told the
\nPost.<\/p>\n
He added that the new lubricant could be used for both diesel
\nand gasoline automotive engines.<\/p>\n
Pertamina is currently producing 25 brands of lubricants for
\ncar engines, car gears and industrial machinery. (fhp)<\/p>",
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