Oiltek, Pertamina to setup JV to secure POME feedstocks for SAF

Oiltek International and Pertamina announced that the two companies have signed an agreement to engage in a proposed partnership and transactions in relation to the development of a pre-treatment unit (PTU) and the supply of feedstock for the PTU.

Under the partnership, the companies will explore alternative feedstocks to replace crude palm oil (CPO) so that sustainable aviation fuel (SAF) and hydrotreated vegetable oils (HVO) products can meet the growing demand of export market, especially in Western Europe and East Asia.

Following the agreement, Pertamina and Oiltek intend to enter into a joint venture in Indonesia contributing funding and assets for working capital of the activities, based on the proportion of its participation.

Oiltek Global will build the complete PTU and source for the supply of feedstock (POME) for the PTU. The company said it has been on the lookout for business expansion opportunities through investments, mergers and acquisitions, joint ventures and strategic alliances and pursued this partnership with Pertamina to develop recurring income streams.