(EnergyAsia, August 28, Friday) — State-owned Indonesian gas and oil firm PT Pertamina is seeking a bigger stake in its proposed US$1.5 billion joint venture with Japan’s Mitsui & Co for an oil refinery project in Central Java.
The move, however, could put in jeopardy financing that was originally secured for the project with the Japan Bank for International Cooperation.
Under a preliminary agreement, a 60,000 b/d residue fluid catalytic cracking unit to produce gasoline would be built at Pertamina’s existing Cilacap refinery in Java. Mitsui would have an 80% stake in the project while the Indonesian firm would hold the balance of 20%.
The government has asked Pertamina to take a bigger role in the project, but it did not say by how much. The uncertainty could further delay the construction of the much needed refining unit, which was to have been completed early last year.