Pertamina's Refining and Petrochemical Business Achieves Performance Exceeding Target in Q1 2023
Jakarta, May 23, 2023 – As Pertamina's sub-holding for refining and petrochemical business, PT Kilang Pertamina Internasional (PT KPI) continues to perform its best efforts to achieve positive performance. In 2023, PT KPI successfully recorded operational performance that exceeded the Corporate Work Plan and Budget (RKAP) targets.
Several key factors have driven positive performance throughout the first quarter of 2023, including refinery optimization achievements and operational cost efficiency. According to the President Director of PT KPI, Taufik Aditiyawarman, refinery optimization is carried out by producing high-value products following the crack spread movements (the difference between crude oil price as raw material and products produced by the refinery price). "Refinery optimization is also carried out in the crude procurement process. We are given the flexibility to process crude from domestic sources to provide better refinery profitability," explained Taufik.
Until March 2023, PT Kilang Pertamina Internasional, through all of its units, has processed 80 million barrels of crude oil (refinery intake). Efforts to produce high-value products from this refinery intake are carried out to increase the Yield Valuable figures, where one of the driven products is Marine Fuel Oil Low Sulfur (MFO LS - for ship bunkering). According to Taufik, this has successfully resulted in the actual Yield of Valuable Products (YVP) exceeding the target. The percentage of production of high-value products reached 83.5%, which is approximately 101.3% of the March 2023 RKAP target.
Furthermore, "Plant Availability Factor (PAF), an indicator of refinery operational reliability, has also been improved to 99.8% from the target of 99.2% in the March 2023 RKAP," clarified Taufik. The PAF value of the refinery is consistently maintained above 99% through routine/non-routine maintenance (turnarounds), refinery digitization, and the implementation of the Asset Integrity Management System (AIMS). The improvement in refinery reliability is carried out through several programs, including Rejuvenation (material and equipment rejuvenation), Overhaul, and Turn-Around. The overall cost of these activities is estimated to be nearly USD 2 billion by 2026.
Throughout January 2023 to March 2023, based on safety considerations as well as the improvement of integrity, capacity, and product quality, several refinery units under the PT KPI management have undergone maintenance and repairs, including RU VI Balongan, RU IV Cilacap, and TPPI refinery.
Regarding energy consumption, the Energy Intensity Index (EII) for production in the refinery until March 2023 was recorded at 107.9, better than the RKAP target of nearly 108.4. A smaller index number indicates better performance in terms of EII realization. Programs implemented to reduce EII include external electricity and gas utilization, as well as equipment rejuvenation.
Fadjar Djoko Santoso, the Vice President of Corporate Communication of PT Pertamina (Persero), stated that PT KPI's positive achievements as a Refining & Petrochemical Subholding are concrete proof of Pertamina's commitment to maintaining national energy resilience.
"Pertamina continues to modernize refineries, including new refineries construction, to enhance national energy resilience. At the same time, Pertamina continues to pursue efficiency to improve competitiveness with global companies," said Fadjar.
Efforts to Improve Refinery Safety
KPI (PT Kilang Pertamina Internasional) is also continuously making improvements regarding refinery security based on lessons learned, with a focus on several activities, including lightning protection installations addition, overflow prevention, and an Independent International Audit according to the International Standard Rating System Level 9 (ISRS Level 9) implementation.
Currently, the program for adding lightning protection has been completed in all refineries, with 320 units of Lightning Protection System (LPS) and 140 units of Faraday Cages installed. For overflow prevention, it has also been implemented, including Automatic Tank Gauges (ATG), Independent High-Level Alarms (IHLA), and Motor Operating Valves (MOV) installation. "We have also improved the existing Defensive Fire Protection System in all refineries by adding CCTV, alarms, Fire Gas Detection Systems, and Offensive Fire Protection Systems," added Taufik.
The Independent International Audit, ISRS Level 9 implementation has resulted in improvement recommendations with a focus on Plant Protection through the Process Safety & Asset Integrity Management System (PSAIMS), Competency Gap and Knowledge Management implementation through training and certification programs, as well as Hardware and Software through equipment rejuvenation and PSAIMS dashboard for monitoring equipment integrity.
Overall, the follow-up actions from the external audit assessment for the short term have been completed in 2022, and for the medium term, it is expected to be completed by September 2023. The follow-up actions based on the ISRS Level 9 assessment account for approximately USD 980 million of the total budget of USD 2 billion for the refinery reliability improvement program.
PT Kilang Pertamina Internasional is a subsidiary of PT Pertamina (Persero) engaged in the primary business of oil processing and petrochemicals following the principles of ESG (Environmental, Social & Governance). PT KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of UNGC in its operational strategy as part of the implementation of ESG aspects. PT KPI will continue to conduct its business professionally to realize its vision of becoming a world-class oil refinery and petrochemical company with an environmental focus, social responsibility, and good corporate governance.**