Pertamina called on to explain Balongan refinery problems<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina should
\nexplain the reasons behind chronic production problems at its
\nUS$2 billion Balongan refinery in West Java, an energy analyst
\nsaid yesterday.<\/p>\n
Iskandar Mandji, a former member of the House of
\nRepresentatives, told The Jakarta Post the ongoing production
\nproblems at the Balongan refinery and Pertamina's unwillingness
\nto explain their reasons had created a public perception that the
\nrefinery was an inefficient and corrupt venture.<\/p>\n
Iskandar made the statement following a report that the
\nrefinery was shut down Monday for an indefinite period of time
\ndue to an alleged technical problem at its residue cracking unit.<\/p>\n
Pertamina has repeatedly shut down the refinery due to alleged
\ntechnical problems since the facility started operation in March
\n1995. The last shutdown took place two months ago.<\/p>\n
\"What actually happens there? Some people blame the production
\nproblems on faulty construction. But others say Pertamina
\nintentionally shuts down the refinery every now and then to allow
\nmore imports of fuel so that the fuel importers can get more
\nprofits,\" Iskandar said.<\/p>\n
Pertamina data indicates fuel imports are monopolized by PT
\nPerta Oil Marketing Ltd., which is 30 percent owned by Pertamina
\nand 70 percent owned by its joint partners, including the Humpuss
\ngroup controlled by President Soeharto's son Hutomo Mandala
\nPutra. Several foundations linked to top political leaders
\ncontrol the remaining shares.<\/p>\n
Indonesia still imports between 15 percent and 20 percent of
\nits annual consumption of 52 million kiloliters due to the
\nlimited capacity of Pertamina's refineries.<\/p>\n
Pertamina has nine refineries located in Pangkalan Brandan in
\nNorth Sumatra, Dumai and Sungai Pakning in Riau, Musi in South
\nSumatra, Balongan in West Java, Cilacap and Cepu in Central Java,
\nand Balikpapan in East Kalimantan. The refineries have a total
\ncapacity of about one million barrels per day (bpd) of crude oil.<\/p>\n
The Balongan refinery was constructed by a group of
\ncontractors, including Japan's JGC Corporation, Foster Wheeler of
\nthe United States and the Far East Trading Corp., an affiliate of
\nPertamina. The construction of the refinery started in 1990.<\/p>\n
Financing for the project was provided by Java Petroleum
\nInvestment Co. Ltd. -- a consortium grouping Mitsui Corp.,
\nMarubeni Corp., Sumitomo, C Itoh & Co. (now Itochu) and 20
\nJapanese banks.<\/p>\n
The refinery, which has a processing capacity of 125,000 bpd
\nof crude oil, is designed to produce 136,000 metric tons of
\nliquid petroleum gas (LPG) per year, 186,000 metric tons of
\npropylene a year, 54,500 bpd of aviation gas, 24,500 bpd of
\nautomotive diesel oil, 14,890 bpd of industrial diesel oil and 72
\nmetric tons of sulfur per day.<\/p>\n
The refinery's inauguration by President Soeharto, scheduled
\nfor Jan. 1995, was delayed for two months due to damages created
\nduring its trial operation.<\/p>\n
A Pertamina official who asked for anonymity said yesterday
\nthe production problems at the refinery were due to initial
\ndesign problems.<\/p>\n
He said the refinery may have been built with low-quality
\nconstruction materials because Pertamina officials supervising
\nthe project wanted to rake in illegal cost savings.<\/p>\n
Pertamina spokesman Ramly Djaafar said he did not know the
\nreasons behind the Balongan refinery's production problems.<\/p>\n
\"The refinery is still new, very sophisticated, but strangely
\nit often experiences production problems, different from other
\nrefineries which are older than it. I don't know the reasons,\" he
\nsaid. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-called-on-to-explain-balongan-refinery-problems-1447893297",
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