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Mitsui exits oil refinery upgrade project in Indonesia

PT Pertamina has dropped its joint venture (JV) with Japan’s Mitsui & Co. Ltd. for the US$1.5-billion residue fluid catalytic cracking unit (RFCC) project at the Cilacap oil refinery in Central Java. Several disagreements over the business model for the project were cited by Heru Sutrisno, senior vice president for business development at Pertamina’s Processing Directorate, as the reason for the termination of the JV in which Mitsui had an 80% stake and Pertamina the remaining 20%, although no further details were given. The RFCC project was designed to produce propylene, liquid petroleum gas (LPG), and gasoline more economically to bring down operating costs at the facility. (March 19, 2010)