KUALA LUMPUR, October 19 – PETRONAS Lubricants International (PLI) and PT Kilang Pertamina Internasional (PT KPI) have signed 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 involves a technical and detailed feasibility study aimed at meeting the demands of the Indonesian market and expanding into growing regional markets, including China and Southeast Asia. An investment decision is anticipated to be reached by 2025.
Hezlinn Idris, Managing Director and Group CEO of PETRONAS Lubricants International, commented at the signing ceremony, “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 leverage each other’s strengths, capabilities, and existing distribution networks, allowing us to reach our customers more efficiently. We believe this JSA will provide both companies with additional opportunities to explore untapped markets and expand our presence in the region as leaders in lubricant technology.”
Johan N.B. Nababan, Director of Business Planning & Development at PT Kilang Pertamina Internasional, added, “We are proud to partner with PETRONAS Lubricants International as we seek 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 pleased that this partnership will open up new possibilities for us.” As a subsidiary of PT Pertamina (Persero), PT KPI is a significant refining and petrochemical company in Southeast Asia that focuses on investment and management of Pertamina’s operations involving the conversion 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 the existing RU IV Cilacap, producing up to 800 tonnes/day of high-grade lube base oils, along with supplementary products like Diesel Fuel, Naphtha, and LPG. Base oils are primarily used to manufacture products including greases, motor oil, and metal processing fluids. Due to their dynamic properties and formulations, they are preferred for industrial applications such as compressors, hydraulic systems, gears, and turbines.
