PETRONAS Lubricants International and PT Kilang Pertamina Internasional collaborate to explore a greenfield lube base oil plant in Indonesia

16 September 2023

PETRONAS Lubricants International (PLI) and PT Kilang Pertamina Internasional (PT KPI) have recently entered into a Joint Study Agreement (JSA) to explore the potential development of a new greenfield lube base oil plant in Refinery Unit (RU) IV Cilacap, Central Java. This strategic collaboration will involve conducting a comprehensive technical and feasibility study to assess the viability of the project. The plant is intended to meet the lubricant demands of the Indonesian market as well as the growing regional markets in China and Southeast Asia. A final investment decision is anticipated to be reached by 2025.

During the signing ceremony, Hezlinn Idris, the Managing Director and Group CEO of PETRONAS Lubricants International, stated, "This JSA is part of our larger strategic efforts to complement and expand our existing portfolio of high-grade lube base oils. Through this collaboration, we will leverage each other's strengths, capabilities, and distribution networks to better and more quickly serve our customers. We believe this JSA will offer both companies new opportunities to explore untapped markets and further establish our presence in the region as leaders in lubricant technology."

Johan N.B. Nababan, Director of Business Planning & Development at PT Kilang Pertamina Internasional, commented on the partnership, saying, "We are proud to collaborate with PETRONAS Lubricants International as we seek synergistic opportunities to expand our existing presence in the region. There is significant potential for growth and innovation in lubricant technology, and we are excited that this partnership will unlock new possibilities for us."

PT Kilang Pertamina Internasional, a subsidiary of PT Pertamina (Persero), is a significant refining and petrochemical company in Southeast Asia. It specializes in managing and investing in Pertamina's operations related to the conversion of oil, natural gas, biofuels, and other resources into valuable products, including fuel, lubricants, petrochemicals, and pharmaceuticals.

The refinery in RU IV Cilacap has the capacity to process raw materials and produce up to 800 tons per day of high-grade lube base oils, along with other supplementary products such as Diesel Fuel, Naphtha, and LPG. Base oils are essential for manufacturing various products, including greases, motor oil, and metal processing fluids. Their unique properties and formulations make them a preferred choice for industrial applications such as compressors, hydraulic systems, gears, and turbines.