Pertamina Builds Crude Oil Terminal US$ 450 Million

SABTU, 28 JANUARI 2012 12:02 WIB

JAKARTA. PT Pertamina (Persero) has prepared bid process to immediately realize Centralized Crude Terminal (CCT) project Lawe-lawe for US$ 450 million in crude oil storage capacity up to 25 million barrel or equivalent to 25 days of operation reserves of domestic plants.

The project is also meant to increase energy security and also give flexibility to Pertamina in blending the combination between domestic crude oil absorption and import. CCT Lawe-lawe would also be developed becoming crude hub in Southeast Asia and also is part of long-term plan of Pertamina to create hub energy in some areas in Indonesia.

CCT Project Lawe-lawe will supply a facility of crude oil blending, including domestic crude oil having high contaminant level, so it allows crude oil purchase with variety of type in competitive prices. CCT Lawe-lawe would become facility of crude oil stock reserves for all processing plant in domestic.

“CCT Lawe-lawe construction will be in form of Crude Storage with its receiving facility and blending to increase crude oil stock security by maximizing domestic crude oil absorption so it could suppress import, which directly will also influence to cost decrease of high crude oil shipping,” says Vice President Corporate Communication Pertamina Mochamad Harun.

The project plan has been studied since last year is to anticipate matter such as the decrease of domestic crude oil production, the limit of crude oil specification could be managed by plants, and also the high of transportation cost of imported crude oil, and also the price fluctuation of the world’s crude oil.

The project is also harmonized with plants development plan operated and will be built by Pertamina. By the existence of CCT Lawe-lawe is hoped that the flexibility of plant throughput increase, and also the higher crude oil quality so the plants margin will be better.

To realize the project, Pertamina prepares investment about US$ 450 million. “The bid and engineering process, procurement and construction (EPC) will be started this year.” CCT Lawe-lawe would be in capacity of more than 25 million barrel of crude oil, consists of 25 storage tanks. The project is planned in two stages and targeted to finish wholly by 2014.

So far, Pertamina has finished the AMDAL analysis process in the area of 750 hectare in Lawe-lawe, Penajam Pasir Utara, East Kalimantan. The Local Government has stated its support in form of the acceleration of licensing process to make the project could immediately be realized.

Pertamina also affirmed its strong willing to be able to absorb all domestic crude oil produced by Cooperation Contract Contractors (KKKS). Along with the plan of CCT project, the optimization of domestic crude oil is motivated by Company’s strong willing to keep national energy security by suppressing imported crude oil, which is about 300 million barrel per day and also as anticipation towards the possibility of oil crisis if situation in Hormuz Strait, Iran worsen.

So that, Pertamina asks government support to accomplish oil share regulation, which gives options to Pertamina to buy crude oil of KKKS’s share. Pertamina’s effort to buy crude oil of KKKS share has achieved full support of BPMigas, but recently there is no regulation managing the matter and still needed accomplishment of regulation to make KKKS would like to sell their share for domestic plants.

Besides sending letter to BPMigas, Pertamina has also sent letter of domestic crude oil purchase demand to all KKKS exporting their crude oil share, which reach about 210 million barrel per day. “Pertamina is ready to give the best offer for those KKKS.”

Besides securing crude oil supply, Pertamina will also strengthen BBM products supply by constructing infrastructure and facility of BBM Hyper Terminal Sambu Island, Riau in capacity 300.000 kiloliter (KL). The investment budgeted for the project is about US$ 50 million. Infrastructure and facility of BBM Hyper Terminal will be built in Sumbu Island, among are such areas and bonded warehouse in capacity of 300.000 KL and 3 docks in maximum ship measure of 100.000 DWT (dead weight tons) in maximal draft of 18 meter.

Besides, there is also office facility and Occupational Health, Safety and Environmental Protection (K3LL). “BBM Hyper Terminal Sumbu Island and Centralized Crude Terminal Lawe-lawe are important step of Pertamina’s long-term plan to create energy hub in some areas in Indonesia,” explains Harun. (AK)