Indonesian oil and natural gas firm Pertamina intends to invest $25bn to upgrade four main oil refineries in the country.
The upgrades are being planned to provide for the rising crude oil demands and are located in Cilacap, Central Java; Balikpapan, East Kalimantan; Balongan, West Java; and Dumai, Riau, reports Jakarta Post citing Tempo.co.
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Pertamina processing director Rachmad Hardadi was cited by the Indonesian news portal as saying that the developments will continue till 2021.
Rachmad said: "Indonesia’s consumption reaches 1.6 million barrels of crude oil per day."
Pertamina will co-ordinate with strategic partners for the upgrade initiatives without giving up its majority stake.
Japan based JX Nippon Oil and Energy and Saudi Arabian oil giant Saudi Aramco had earlier expressed interest to participate in the upgrade projects for the refineries, reports The Jakarta Post.
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By GlobalDataJX Nippon Oil is already a part of the Balikpapan refinery upgrade project which aims to increase its daily production capacity to 360,000 barrels from its present capacity for 260,000 barrels. The firm is likely to sign the potential agreement for the project with Pertamina in November.
State-owned Pertamina operates six refineries in the country along with refineries in Kasim in West Papua and Plaju in South Sumatra.
