The firm has selected Oman’s Overseas Oil and Gas (OOG) and Cosmo Oil International (COI), a trading arm of Japan oil processing company Cosmo Energy Group, for the project planned to be developed in East Kalimantan, Indonesia.
Pertamina refinery megaprojects and petrochemicals director Ardhy Mokobombang said that the firm will finalize a framework agreement with the selected consortium.
Planned to be commissioned in 2025, the Bontang refinery will have production capacity of 300,000 barrels of oil per day.
Mokobombang was quoted by Nikkei Asian Review as saying: "The consortium will be backed financially by the Oman government, and the crude supply, too.
"The technical support and the marketing will be supported by Cosmo, as a group and also the trading arm."
Upon signing the framework agreement, the Indonesian firm plans to complete feasibility study for the project in 2019 and begin refinery construction work in 2020.
Pertamina will have rights to supply 20% of the crude oil for the Bontang grass roots refinery project, while the remaining will be supplied by Oman, Mokobombang said.
The Indonesian firm plans to make final investment decision on the Bontang refinery in mid-2020. The refinery is expected to help the country to reduce its fuel imports, Reuters reported.
