Hyundai Engineering has won a US$2.17 billion oil refinery upgrading project in Indonesia.
Hyundai Engineering announced on Sept. 16 that it has signed a contract with Indonesian national oil company Pertamina to upgrade its Balikpapan oil refinery.
The total cost of the project is US$3.97 billion, but Hyundai Engineering’s share is US$2.17 billion. The company is responsible for the engineering, procurement and construction (EPC) of the project. The construction work will run 53 months in total.
The oil refinery is located in East Kalimantan of Borneo Island, 1,000 km northeast of Jakarta, the capital of Indonesia.
Hyundai Engineering will upgrade the oil refinery's existing facilities and build facilities to meet the Euro 5 standards. The project will elevate the oil refinery’s crude oil refining capacities to 360,000 barrels a day from the current 260,000 barrels. It will produce eco-friendly fuels that meet the Euro 5 standards.
100 percent owned by the Indonesian government, Pertamina has drawn up an oil refinery development master plan and will invest US$30 billion to expand its crude oil refining capacities from one million barrels a day to two million barrels by 2026.