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Surya Esa Perkasa’s subsidiary awards Rekayasa Industri EPC contract

JAKARTA ( – PT Surya Esa Perkasa Tbk said that its subsidiary, PT Panca Amara Utama (PAU) has awarded the engineering, procurement and construction (EPC) Contract for its ammonia plant to PT Rekayasa Industri (Rekind), replacing the consortium of Toyo Engineering Corporation of Japan and PT Inti Karya Persada Tehnik (IKPT) on Tuesday (June 23).

The EPC works are on a turnkey basis and shall cover 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 US$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,” said Vinod Laroya, executive director of PAU.

“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” Vinod Laroya added.

Panca Amara Utama will receive gas from the Senoro-Toili fields, operated by joint operating body (JOB) Pertamina Medco Tomori Sulawesi. The plant is designed to produce 700,000 tons of ammonia per year.

The project is financed by international banks led by the International Finance Corporation (IFC) and supported by 7 international banks (UOB, ANZ, OCBC, KDB, HSBC, Standard Chartered, and SMBC).

This ammonia plant project supports the government’s directive to maximize domestic utilization and value addition of natural gas. PAU is 60% owned by the Surya Eka Perkasa.

Surya Esa Perkasa is 30 percent owned by PT Trinugraha Akraya Sejahtara, 20 percent owned by PT Ramaduta Teltaka, 9.09 percent by CLSA, Ltd and public 40.91 percent. Trinugraha is a company owned by former Astra International CEO T.P. Rachmat, Garibaldi Thohir, who is also a key shareholder of Adaro Energy and Chander Vinod Laroya, former president director of PT Indorama Synthetics Tbk. Trinugraha currently owns 41.25 percent of Panca Amara Utama shares. (*)

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