Pipelines & Transport Projects By Continents

SPL / SPM of Balongan Refinery Valued at Rp1.79 trillion is Starting to be Built

The Groundbreaking of submarine pipe line (SPL) and single point mooring (SPM) facilities construction in Pertamina’s Refinery Unit VI Balongan, Indramayu, West Java are conducted today by Minister of State-owned Enterprises Rini Soemarno and Minister of Energy and Mineral Resources Ignasius Jonan.


In this groundbreaking, Rini and Jonan are accompanied by Acting President Director of Pertamina Yenni Andayani along with the Pertamina’s management.


"I appreciate Pertamina which making improvements to its existing refineries, as well as this SPL / SPM project. We support their efforts to increase the national refinery capacity through RDMP mail-in NGRR project, "said Jonan in his speech.


SPL and SPM facilities are built as part of Pertamina’s effort to increase the reliability of crude oil supply to RU VI Balongan refinery. With this facilities, the effectiveness of loading / unloading activity are expected to increase and crude oil transportation costs can be reduced because the tanker’s lay time becomes shorter. In addition, SPL and SPM facilities are also capable to support eco-friendly operational activities


The project includes offshore and onshore works. The offshore work is the SPL construction which have 32 inch diameter with a length of 15.2 kilometers and SPM capacity of 165 thousand dead weight tonnage (DWT). Meanwhile, the onshore work are the underground pipe construction which have 32 inches diameter with a length of 500 meters; 1 unit of new tank capacity construction with a capacity of 22 kiloliters; modification of existing tank; and the installation of flushing and pigging system.


In the process, Pertamina set a number of partners through the procurement process in accordance with the company’s procedures. Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC) work packages are undertaken by the consortium of PT Engineering industry (REKIND) - Intermoor; SPL work package is undertaken by the consortium of JFE Japan - Marubeni Itochu and PT. Atamora Teknik Makmur; SPL coating work package is by PT. Indal Steel Pipe; and SPM work package is undertaken by the consortium of Orwell. By absorbing of approximately 600 workers, Pertamina is targeting this project will be completed in 23 months since the contract signing on October 10th, 2016. This project investment  is reached 1.79 trillion rupiah.


"We have conducted a rigorous selection through a procurement process which always based on good corporate governance principle. Therefore, we believe that we get the best partners to work on this project, and we are optimistic that we can finish it on time with a predetermined quality, "said Yenni.


RU VI Balongan refinery is one of the oil refineries that will be developed through Refinery Development Master Plan (RDMP) mega projects with investment of US $ 1.2 billion. This year RU VI Balongan RDMP has entered Basic Engineering Design (BED) stage and expected to be finished by 2020 with a capacity of 125 thousand barrels per day to 240 thousand barrels per day.


RDMP Mega Projects and new refinery construction (Grass Root Refinery) are targeted to increase the national refinery capacity to 2 million barrels per day in 2023. In addition to RU VI Balongan refinery, RDMP project also conducted in RU IV Cilacap refinery, RU V Balikpapan refinery, and RU II Dumai refinery, while the NGRR is set in Tuban and Bontang.


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