(EnergyAsia, February 27 2012, Monday) — Indonesia’s state-owned oil and gas company Pertamina is targeting to complete its US$1.4 billion project to upgrade its 348,000 b/d refinery in Cilacap, Central Java by end-2014.

Two months after the project was officially launched by Indonesian President Susilo Bambang Yudhoyono, the company expects to meet its deadline of adding a 62,000 b/d residual fluid catalytic cracking unit to produce gasoline, liquefied petroleum gas and propylene.

Cilacap is the biggest and most modern of Pertamina’s six refineries which have a total nameplate processing capacity of one million b/d.

But due to the refineries’ low operating rates, Pertamina has been increasing its dependence on imports to meet the country’s rising fuel demand of about 1.3 million b/d.

Pertamina is in talks with Middle Eastern oil producers to jointly invest in helping it to expand and upgrade its five other refineries in Balongan (West Java), Tuban (East Java), Plaju (South Sumatra), Dumai (Riau) and Balikpapan (East Kalimantan).