Balongan production capacity increase, reduce fuel imports to 9.1 million barrels/year

Nusa Dua, Bali – In the midst of the energy crisis that hit Europe, Indonesia was able to increase production capacity at a number of oil and gas refineries operated by Pertamina, the national oil and gas operator said Wednesday (31/8).

Pertamina President Director Nicke Widyawati revealed that there was an additional fuel production of 25,000 barrels/day after the completion of the Refinery Development Master Plan (RDMP) project or phase I revitalisation of the Balongan refinery. “Starting in May, the production of fuel (Pertamax) has increased by 25,000 barrels per day. That means we are able to reduce imports (crude oil) by 9.125 million barrels per day,” she told reporters in Nusa Dua, Bali.

Furthermore, Widyawati said, the RDMP at the Balikpapan Refinery will also be completed by the end of next year so that later the production of fuel will increase by 100,000 barrels/day or 36.5 million barrels/year. Likewise, the Cilacap refinery in Central Java has entered the upgrading flexibility phase.

She said RDMP is a fairly important project, because not only it increases oil and gas production, but also refinery capabilities. The current oil production from Pertamina’s refineries is around 1.05 million barrels/day. Meanwhile, the national oil demand is around 1.6 million barrels/day. “The (refinery) production capacity will be increased to 1.4 million barrels per day to meet national needs,” said Widyawati.

Before the revitalisation project, most refineries could only process crude oil with low sulfur because it was old. There is even a refinery that was built in 1937, causing production costs to be expensive.

Pertamina said refinery revitalisation projects are currently underway in Cilacap (Central Java), Balongan Indramayu (West Java), Dumai (Riau), Balikpapan (East Kalimantan), and Plaju (South Sumatra). The five projects worth Rp 214.16 trillion will increase oil production to 150% from its previous operations.

Indonesia’s ability to meet the needs of domestic products is currently very low, which can only meet the needs for 48 days in 2013 and is estimated to decrease to 38 days in 2025. If left unchecked, this has the potential to become a threat to energy security. (Hartatik)

Banner photo: Refinery Development Master Plan (RDMP) project, revitalization of the Balongan refinery phase I has been completed. (Source: Pertamina)

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