Pertamina lubricants to start operation in 2012.
State oil and gas company PT Pertamina will establish a subsidiary
to start lubricant business in January 2012. Foreign lubricant marketing
manager of Pertamina Lubricants Redesmon Munir said the new subsidiary
is expected to expand the lubricant business of Pertamina. Currently
Pertamina Lubricants is still awaiting the process of spin off from its
parent company. Pertamina Lubricants already has assets worth more than
Rp2 trillion including lands and four lube oil blending plants (LOBP) in
Jakarta, Cilacap, Gresik, and Surabaya. The one in Surabaya is used only
to produce lube oil for exports and for domestic market ahead of Idul
Fitri. Redesmon said in 2010, total sales of lube oils reached 550,000
kiloliters with 90% for domestic market. Exports were small as last
year, the Cilacap plant caught fire. In 2011, Pertamina hopes to exports
150,000 kiloliters of lube oil pelumas and dispose of 600,000 kiloliters
on domestic market.