Technology, Production Capacity, Challenges, and a New Oil Refinery Development Plan in Indonesia


Oil Refinery (oil refinery) is a factory / industrial facilities that process crude oil into petroleum products that can be directly used as well as other products that become the raw material for the petrochemical industry.

The main products produced from oil refineries, among others: petrol (gasoline), diesel oil, kerosene (kerosene).

Process Technology in Petroleum Refinery Operations

The oil refinery is an industrial facility which is very complex with various types of process equipment and supporting facilities.

Broadly speaking, the process that takes place in the oil refinery can be classified into 5 sections, namely:

  • The process of distillation, the distillation process is based on differences in boiling point; This process takes place in Atmospheric Distillation Column and Column Vacuum Distillation.
  • The process of conversion, which is a process to change the size and structure of hydrocarbon compounds.
  • Treatment Process (treatment). This process is intended to prepare hydrocarbon fractions for further processing, also to be processed into the final product.
  • Formulation and Blending (blending), which is the process of mixing the hydrocarbon fractions and addition of additives to obtain a final product with a certain spec.
  • other processes, among others, include: sewage treatment, the removal of salt water (sourwater stripping), the re-acquisition of sulfur (sulfur recovery), process heating, process cooling, process of making hydrogen, and other supporting processes.

Included in this conversion process is:

  • decomposition by means of thermal and catalytic cracking (thermal and catalytic cracking)
  • Unification through alkylation and polymerization process
  • alteration through isomerization and catalytic reforming process

Oil Refinery Capacity in Indonesia (barrel per day

  • Cilacap in Central Java: 340,000
  • Balikpapan in East Kalimantan: 260,000
  • Plaju in South Sumatra: 127 300
  • Dumai, Riau: 127,000
  • Tuban (TPPI) in East Java: 100,000
  • S.Pakning, Riau: 50,000
  • Kasim: 10,000
  • Cepu (TWU) in Central Java: 6,000
  • Cepu in Central Java: 3,800

(Source: Ministry of Energy and Mineral Resources / Bisnis Indonesia).

Oil refinery owned PT Pertamina (Persero)

PT Pertamina (Persero) was officially launched since December 10, 1957, but traces refinery of PT Pertamina (Persero) has existed since before Indonesia’s independence.

Throughout the span of history, Pertamina has now recorded six refinery units having a capacity of 1.05 million barrels per day (bpd).

Of the total capacity of the refinery, capable of producing oil by 700 thousand800 thousand bpd, while the national fuel consumption is 1.5 million bpd to 1.6 .

Sixth namely Pertamina refinery

  • Dumai refinery in Riau (capacity of 127 thousand barrels / day),
  • Plaju refinery in South Sumatra (capacity of 145 thousand barrels / day),
  • Balikpapan Refinery in East Kalimantan (capacity of 260 thousand barrels / day),
  • Cilacap refinery in Central Java (capacity of 548 thousand barrels / day),
  • Balongan in West Java (capacity of 125 thousand barrels / day) and
  • Sorong Refinery in West Irian Jaya (capacity of 10 thousand barrels / day).

The last refinery built namely Pertamina Balongan refinery in 1994.

Balikpapan refinery

PT Pertamina (Persero) will get a lifting premiere of Block 405A in Algeria on March 27, 2014.

As much as 600,000 barrels of crude oil will be processed in Balikpapan Refinery.

New Oil Refinery Development Challenges 

  • Economically new refinery construction does require a very large cost, or about Rp70 trillion per plant, while only giving a low margin so as not to attract investors to invest in the sector.
  • Supply availability of crude oil to be processed in oil refineries.
  • Management of the construction permit.

Construction of New Refinery 300,000 bpd

Government of Indonesia and Iraq through cooperation business to business (B to B) is planning to build a new oil refinery:

  • With a capacity of 300,000 barrels per day,
  • Located in East Kalimantan,
  • In a land area of ​​900 hectares,
  • estimated investment value of up to Rp90 trillion,
  • Groundbreaking will be targeted Quartal IV, 2014 (Prior to October 2014).

From the supply side, the country of Iraq is committed to supply at least 300,000 barrels of crude oil per day for the new refinery, as set out in the memorandum of commitment or letter of intent (LOI) between the Government of Indonesia and Iraq signed in Kuta, Badung regency, Bali (11/3 / 2014).

Recorded that Iraq production as much as 3 million barrels per day, which means 10% of production will be allocated to supply the new refinery.

Iraq is also an opportunity to extend the guarantee supply more than 20 years if production targets as many as 9 million barrels per day reached in the next few years.

Wishing the grace of the Lord for smooth development of this new oil refinery for energy security and maximum welfare of the people.

In Bahasa Indonesia: “Teknologi, Kapasitas Produksi, Tantangan, dan Rencana Pembangunan Kilang Minyak Baru di Indonesia

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