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Pertamina Signs Cooperation with Oman’s OOG to Build Bontang Refinery

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PT Pertamina (Persero) officially appointed an oil and gas company from Oman, Overseas Oil & Gas (OOG), to carry out the construction of the grasssroots refinery (GRR) project in Bontang, East Kalimantan.

The commitment between the two companies was marked by the signing of a framework agreement, Monday (10/12). With the agreement, OOG will become the majority joint venture partner at Bontang GRR.

OOG is a downstream oil and gas business services company from Muscat, Oman, which runs a business of services including the construction and operation of commercial structures and design services with experienced personnel.

OOG also provides construction management services, project management, operation and maintenance support, and engineering and construction solutions.

OOG was chosen as Pertamina’s partner after passing the appointment selection mechanism for Bontang GRR in January 2018. The OOG won the strategic partner status after defeating several domestic and foreign competitors who were also interested in working on this project.

Pertamina’s Corporate Communication Vice President Adiatma Sardjito said that cooperation with the OOG would bring some benefits to Pertamina.

First, Pertamina can optimize capital expenditure to carry out other refinery expansion and construction programs such as the construction of Balikpapan, Cilacap, Balongan, and Tuban refineries.

Second, Pertamina will be the offtaker or buyer of fuel produced by GRR Bontang to supply domestic needs. Its fuel products are gasoline, avtur (aircraft fuel), and liquefied petroleum gas (LPG).

Refinery production capacity is targeted to reach 300,000 barrels of fuel oil per day.

After signing the framework agreement with OOG, both parties will conduct a feasibility study to determine the technical configuration of the refinery, the economics of the project, and the risks that will likely be encountered and must be anticipated early so that the project can run on time, according to the budget, specifications and regulations.

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