Pertamina plans to take over Banten project

Indonesia’s state oil company Pertamina has confirmed that it will take over as operator of the country’s first proposed new refinery in years — a 300,000 barrel per day facility in Banten, West Java. Pertamina will officially take over the project from PT Elnusa, its 51% owned subsidiary, after Elnusa’s planned initial public offering in December. Last year, Elnusa signed a provisional agreement with National Iranian Oil Refining and Distribution Co. (NIORDC) to develop the plant, in line with a 2005 memorandum of understanding. Chief Executive Ari Soemarno said earlier this year that due to escalating costs Pertamina would give priority to upgrading its existing Cilacap and Balikpapan refineries over grassroots projects. (October 12, 2007)