Pertamina Refinery Operational Fees Are Lower Than Singapore

Illustration of Pertamina's refinery. (Photo: Doc. Antara)

JAKARTA - Along with the construction and repair of the refinery carried out by Pertamina, refinery operations are now more efficient and able to compete with a number of refineries owned by world energy companies in Asia Pacific.

President Director of PT Kilang Pertamina Internasional Taufik Aditiyawarman revealed that Pertamina's hard work can be proven by the operational costs of Pertamina's refinery which continues to decline by an average of around US$3.67 per barrel.

Pertamina's refinery operational costs are much lower than the operational costs of the refinery in Singapore which reached 7.81 US dollars per barrel.

The lowest operational costs of the refinery have been achieved by two refineries, namely Refinery Unit (RU) IV Cilacap, which is US$2.83 per barrel and RU III Plaju, which is US$2.92 per barrel.

"Efforts to build and revamping refineries continue to be carried out by Pertamina and the results are able to reduce refinery operations so that they are lower than other oil and gas companies in Asia Pacific," said Taufik in an official statement, Friday, September 9.

Taufik continued, the decline in refinery operations was obtained from the breakthrough and savings made by Pertamina, especially in the procurement of crude oil.

Currently, he continued, Pertamina's crude procurement is able to compete in global markets worth 69.246 US dollars per barrel lower than other companies that are at 69.46 US dollars per barrel and one other oil and gas company is well above 71.80 dollars per barrel.

With the ongoing RDMP program, Taufik said, Pertamina's refinery is also more flexible in processing various types of crude oil.

So, said Taufik, Pertamina's average Net Cash Margin (NCM) is very positive, amounting to US$4.88 per barrel. This success is even far compared to Malaysia Pertronas US$1.56 per barrel.

"Efforts to reduce operating costs are one of them by reducing crude purchase costs, because the largest portion in fuel production is the cost of purchasing crude oil which reaches 92 percent of the Main Cost of Production," he concluded.