PT Surya Esa Perkasa Tbk.’s subsidiary PT Panca Amara Utama signs EPC Contract with PT Rekayasa Industri

PT Surya Esa Perkasa Tbk.’s subsidiary PT Panca Amara Utama signs EPC Contract with PT Rekayasa Industri

Jakarta, 23 June 2015 – PT Surya Esa Perkasa Tbk. (“SEP” or the “Company”), is pleased to announce that its subsidiary, PT Panca Amara Utama (“PAU”) has awarded the EPC Contract for its ammonia plant to PT Rekayasa Industri (“Rekind”), replacing the consortium of Toyo Engineering Corporation (Japan, “Toyo”) and PT Inti Karya Persada Tehnik (“IKPT”) today.

The EPC works are on a turnkey basis and shall cover Engineering, Procurement, Construction (“EPC”) and commissioning services of a world-scale grassroots 2,090 TPD design capacity ammonia plant in Luwuk, Banggai Regency, Central Sulawesi. Scheduled completion is in 28 months.

The EPC contract marks the final milestone for PAU to start construction of the plant after it obtained Lender’s approval to its USD 830 million project last week, and entered into a technology License Agreement with Kellogg Brown & Root (USA, “KBR”) earlier this week.

The plant is designed using KBR’s Reforming Exchanger System (“KRES”) and Purifier Technology, the first such application in Asia.

“We are extremely proud to be the first plant to implement such pioneering technology not only in Indonesia but in Asia, and hope it acts as a catalyst for Indonesia’s growing access to the world’s leading technologies. Between Rekind and PAU, two national companies can set the benchmark for ammonia plants worldwide. Most importantly, we look to participate in the growing economy of Indonesia. We are also pleased that 61% of the project cost expected to be spent in Indonesia, and 87% of operating expenses thereafter” said Vinod Laroya, Executive Director, PAU.

Using natural gas from the Senoro-Toili fields (operated by JOB Pertamina Medco Tomori Sulawesi), PAU will produce 700,000 tons per year at its ammonia facility. Financing for the project has been led by the International Finance Corporation (“IFC), supported by 7 international banks (UOB, ANZ, OCBC, KDB, HSBC, Standard Chartered, and SMBC). This project supports the government’s directive to maximize domestic utilization and value addition of natural gas. PAU is 60% owned by the Company.

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