Pertamina Increase Production of Lube Base Oil Refinery Cilacap LOC

jaysonhyd   September 15, 2016  

PT Pertamina (Persero), SK Lubricants Co.., And PT Patra SK signed a Memorandum of Understanding (MoU) for the implementation of the feasibility study for a project to increase production capacity and marketing of lube base oil refinery LOC RU IV Cilacap.
The signing of the MoU by Pertamina processing director Chrisna Damayanto, CEO & President of SK Lubricants Kwan Ho Choi, and SK Patra President Personal Dadik in Jakarta,
The feasibility study will include technical, market, and economic aspects of the project will be the basis for the three companies to work together to increase the production capacity of the lube base oil refinery LOC RU IV Cilacap, from Group I to Group II. Through this partnership, LOC RU IV Cilacap refinery will be designed to be able to produce lube base oil Group II which has better quality and environmentally friendly, while still producing lube base of Group I.
The signing of this MOU is in line with Pertamina plans to accelerate expansion in the field of downstream Pertamina to realize the mission of profitable downstream. In addition, this project plans to reinforce the company’s commitment to improving Indonesia’s economy by controlling the domestic and regional markets, according to the vision of a World Class Energy Company and became Champion in Asia in 2025.
“The increase in lube base oil production capacity of RU IV Cilacap Refinery LOC is intended to capture the best possible opportunities in the trend of increasing demand for environmentally friendly lube base in the domestic market, regional and global. It is also in line with Pertamina’s commitment to maintain and preserve the environment, “said Vice President of Corporate communiation Mundakir Ali in a press release on Thursday (04/07/2013).
The feasibility study is expected during the period of 6-8 months. After the signing of this MOU, the three companies will form a joint team to finalize a focused strategic agreement to form a joint venture company.
South Korean companies, SK Lubricants, a leading global player in the field of production and marketing of a variety of lube base oil Group, mainly in the South Korean market, Asia and Europe. SK Patra is a joint venture between PT Patra Niaga and SK Energy is engaged in the production and marketing of lube base oil plant site in Dumai, Riau.