Wed, 09 Aug 2000

Pertamina resumes Balikpapan refinery operation

JAKARTA (JP): State oil and gas company Pertamina said on Tuesday operation of its refinery in Balikpapan, East Kalimantan, had resumed after a blast on Monday forced it to close one of its production facilities.

Company spokesman Ramli Djaafar said the production facility Balikpapan II was operating at 65 percent of its capacity after it was shut down on Monday.

"We plan to increase its capacity to 80 percent in two days, except for the Platformer Plant 5 unit," Ramli said in a statement.

The Platformer Plant 5, which produces high octane mogas component (HOMC) and liquefied petroleum gas (LPG), caught fire after Monday's explosion.

The fire started at 6:50 a.m and was extinguished at 8:05 a.m. by the refinery's workers. The location was thoroughly secured by 8:30 a.m.

Pertamina president Baihaki Hakim and Minister of Mines and Energy Susilo Bambang Yudhoyono said there were indications that the blast could have been sabotage.

Bambang ordered the military and police to step up security at all of Pertamina's refineries across the country.

The National Police Headquarters sent a team of forensic experts to investigate the case.

Spokesman for the Pertamina Balikpapan office WWF Welan said on Tuesday two forensic experts from police headquarters, Supt. Bambang Suroso and Sr. Inspt. Agus, had arrived at the location and started investigation.

"The company fully supports the investigation. And we are committed to providing all the data and information transparently," Welan said.

Welan said the team of forensic experts, along with local police officers, met the refinery's board of management.

"We were discussing technical matters related to the repairs at the damaged unit as well as the estimated loss," Welan said.

He said Pertamina was so far unable to estimate the total loss caused by the incident.

"We are suffering double losses, respectively caused by the damage from the fire and a decrease in fuel production," he said.

Ramli said the preliminary investigation revealed that the fire damaged less than 30 percent of the components of Platformer Plant 5.

"The components, such as the continuous catalytic regenerator (CCR), heater and compressor, are still in good condition. The fire is believed to have originated from the corroded pipe of the overhead condenser," Ramli said.

He said Pertamina is importing an additional 430,000 barrels of HOMC following the incident.

Pertamina earlier said the temporary shutdown at the Balikpapan refinery would decrease fuel supplies to the eastern part of Indonesia.

To cover the fuel shortage, Pertamina has planned to make deals with foreign refineries to process 100,000 barrels of oil a day for Pertamina, Ramli said. (02)