Toyo wins Pertamina's contract

Toyo wins Pertamina's contract

JAKARTA: Indonesia's state-owned oil and gas company Pertamina has appointed PT Rekayasa Industri and Japan's Toyo Engineering Corp. to modify its Balongan refinery.

The modification will enable the refinery to produce unleaded gasoline, an official with Pertamina said Tuesday.

Ari Nunuk, a senior official at Pertamina, told reporters that the project will cost around US$153 million.

He said the work is expected to be completed in early 2005.

After the modification work, the Balongan refinery will be able to process 140,000 barrels a day of crude oil, up from 125,000 b/d currently, he said.

The government is trying to reduce the use of leaded gasoline in the country. The nation's capital city - Jakarta - is one of the most polluted cities in the world.

Pertamina has introduced unleaded gasoline in Jakarta and Bali. -- Dow Jones