Hyundai Engineering wins order to upgrade refinery in Indonesia
SEOUL, AJU - Hyundai Engineering (HEC), a unit of South Korea's Hyundai auto group, has secured an order from Pertamina, an Indonesian state-owned oil and natural gas corporation, to upgrade and expand facilities in a refinery in East Kalimantan in the east of Borneo Island.
Pertamina will inject some $3.97 billion into the project to upgrade facilities at its Balikpapan refinery in East Kalimantan and meet EURO V emissions standards. HEC's stake amounts to $2.17 billion. The refinery's capacity would expand from 260,000 barrels per day to 360,000 barrels.
HEC provides comprehensive engineering and construction services for plant and infrastructure projects including building and housing work. The company said it would carry out its work through an EPC (design, purchase and construction) turnkey method.
The Balikpapan order is part of Pertamina's Refinery Development Master Plan (RDMP) to improve the capacity and competitiveness of refineries in Indonesia.