PETRONAS Lubricants International (PLI) and PT Kilang Pertamina Internasional (PT KPI) recently signed a Joint Study Agreement (JSA) to explore the possibility of developing a new greenfield lube base oil plant in Refinery Unit (RU) IV Cilacap, Central Java.

This strategic collaboration will see the two companies carry out a technical and detailed feasibility study, which is expected to cater to the demand of the Indonesian market as well as growing regional markets including China and Southeast Asia, with the investment decision expected to be concluded by 2025.

At the signing ceremony, PETRONAS Lubricants International’s Managing Director and Group CEO, Hezlinn Idris said, “This JSA is part of our larger strategic efforts to complement and grow our existing portfolio of high-grade lube base oils. Through this collaboration, we will be leveraging each other’s strengths, capabilities and existing network distributions, reaching out to our customers better and faster. We believe this JSA will provide both companies with additional opportunities to explore the untapped markets and further expand our presence in the region as leaders in lubricant technology.”

Commenting on the collaboration, PT Kilang Pertamina Internasional’s Director of Business Planning & Development, Johan N.B. Nababan said, “We are proud to partner with PETRONAS Lubricants International, as we seek for synergistic opportunities to further expand our existing presence in the region. There is much potential to grow and push the boundaries of lubricant technology, and we are happy that this partnership will open up the possibilities ahead of us.”

A subsidiary of PT Pertamina (Persero), PT KPI is an important refining and petrochemical company in Southeast Asia that focuses on investing and managing Pertamina's operations involving the transformation of oil, natural gas, biofuels, and other resources into valuable fuel, lubricants, petrochemicals, and pharmaceutical products.

The refinery is capable of processing raw materials from existing RU IV Cilacap, producing up to 800 tonne/day of high-grade lube base oils as well as other supplementary products such as Diesel Fuel, Naphtha and LPG. Base oils are mainly used to manufacture products including greases, motor oil and metal processing fluids. Its dynamic property and formulation make it a preferred choice for industrial applications such as compressors, hydraulic systems, gears and turbines.