Oil Refining Process: How Crude Oil is Transformed into Everyday Products
Apr 30, 2025
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Indonesia’s Recent Move to Join BRICS: What the Move Means for the Oil and Gas Industry?
Indonesia is now officially a member of BRICS, joining a group of major emerging economies that includes Brazil, Russia, India, China, and South Africa. This milestone has been a long-standing goal of President Prabowo, who has targeted BRICS membership for over a decade. "In 2014, when I started my attempt at running for president of Indonesia, I did announce that when I become president, I will bring Indonesia to join BRICS. I told my foreign minister that it's time to make a significant new element in the global economy," Prabowo said.BRICS, formed in 2009, was designed to boost trade, investment, and global influence among rapidly developing economies while challenging Western-dominated global institutions. The group's focus on economic growth, reducing reliance on the US dollar, and offering alternatives like the BRICS New Development Bank has grown increasingly relevant as global economic power shifts. Recently, BRICS has expanded to include new members like Iran and the United Arab Emirates (UAE), which have strengthened its influence in the global oil market. Together, BRICS now accounts for nearly 41% of global oil production and 35% of oil consumption, with those figures potentially rising if Saudi Arabia joins. At Russian Energy Week in Moscow, BRICS energy ministers discussed energy supply challenges and the possibility of trading outside the US dollar system, further solidifying the group’s growing importance in global energy markets.With its BRICS membership now official, Indonesia stands to gain significant benefits, particularly in the energy sector. Minister of Energy and Mineral Resources, Bahlil Lahadalia, explained that Indonesia could potentially purchase oil from Russia through its new position in BRICS. While Indonesia currently imports oil from the Middle East, some of it could originate from Russia. Bahlil emphasized Indonesia’s active foreign policy, stating that as long as it complies with regulations and benefits the nation, there is no issue with pursuing such opportunities, including engaging with BRICS or other international bodies like the OECD.Luhut Pandjaitan, Chairman of the National Economic Council of Indonesia, highlighted the economic opportunities BRICS membership presents. He noted that Indonesia’s larger market provides new pathways for growth, including better access to energy resources. However, he also warned that Indonesia must be vigilant about the energy challenges currently facing Europe and China, where gas supplies from Russia are being disrupted, which could lead to an energy crisis. Luhut further explained that Indonesia could benefit from cheaper oil prices by engaging with Russia as a BRICS member. "If it benefits our country, we will buy oil from Russia. If we can save $20 or $22 per barrel, why not?" he said.Indonesia's entry into BRICS marks a significant step forward in its foreign policy, aligning the country with some of the world’s fastest-growing economies. This move allows Indonesia to tap into new economic opportunities, particularly in energy markets, and strengthens its position on the global stage. By joining BRICS, Indonesia not only gains access to cheaper oil imports but also becomes a more influential player in shaping global trade and energy strategies. As BRICS continues to challenge Western-dominated systems and shape global economic policies, Indonesia's membership is poised to further its strategic interests in energy security, market expansion, and international cooperation.Written by : Exaudi Abetnego Tampubolon
Exploring Material Management in Oil and Gas through PHE WMO Shorebase Visit
Enhancing the knowledge of SPE’s Board of Committee about materials used in the oil and gas industry, Company Visit Division SPE ITS SC conducted Inspect 3.0. The event was held in Pertamina Hulu Energi West Madura Offshore (PHE WMO) Lamongan Shorebase and involved a site visit, presentation, and discussion about the industry.Inspect 3.0 that has been conducted on 14th April is a series of company visit events and in this stewardship, visiting PHE WMO became the third company visit that has been conducted. PHE WMO is a subsidiary of PT Pertamina Hulu Energi (PHE), a subsidiary of PT Pertamina (Persero). PHE WMO primary focus is on exploration and production, but it also has a logistics base in Lamongan, which is crucial for the success of its operations. The PIC of the event Abdulah Abraham Abror explained, company visit this time provided an opportunity for the students to see and visit the shorebase/warehouse under oil and gas-based companies related to the core values of SPE ITS SC. “Through the visit and discussion with the company representative, the students gained insights into the oil and gas industry and how the company worked,” Abror added.More specifically, Abror said this event aims to provide knowledge about the materials used in the oil and gas industry, understand material management and handling processes, as well as introduce students to professions observed in the operating environment. “The event also discussed the end-to-end process of delivery material, including material management and how to handle it safely,” Abror explained.According to Abror, the event started with a safety induction by PHE WMO, followed by an introduction from SPE ITS SC. The opening was then given by PHE WMO, which provided an overview of the company and their role in the shorebase/warehouse. Representative from PHE WMO explained, shorebase management makes remote oil and gas operations more easily managed logistically from nearby ports. Furthermore, the role of shorebase as a support for offshore activities can take the form of a port, warehouse, field, or office. In upstream oil and gas activities, starting from exploration, production, transportation to the refinery, and selling of oil or gas, shorebase is needed. Equipment such as casing and tubing require a long time to order, so supply chain management planning is needed.
After the introduction, the event proceeded to the site visit. The site visit involved observing the drilling equipment, such as drill bits, various sizes of drill pipes, christmas tree, and other equipments required for drilling process. A discussion of oil and gas from both parties was conducted to exchange knowledge and ideas. “During the visit, the students had the opportunity to ask questions and discuss with the representatives,” Abror added.Quoting one of the participants in the event, said Inspect 3.0 has been a great learning opportunity for me. He has gained valuable knowledge about the oil and gas industry, especially the materials and equipment used in the drilling process. "The visit to the Lamongan Shorebase has given me a real-life experience that cannot be gained through theory alone," he said.The event was successful in achieving its objectives, and the participants gained valuable insights into the oil and gas industry. The event was an excellent opportunity for the students to enhance their knowledge, and it was hoped that it would help them to become more competent professionals in the industry. “This event is expected to strengthen the relationship between SPE ITS SC and the oil and gas companies, including PHE WMO,” Abror concluded. By: Tyara Novia
RDMP Balikpapan Expected to Boost Domestic Diesel Supply as Indonesia Sets 2026 Zero-Import Goal
Indonesia is set to eliminate diesel imports in 2026, supported by the upcoming operation of the Refinery Development Master Plan (RDMP) Balikpapan, operated by PT Pertamina (Persero). Based on the latest update, the project is now scheduled to be inaugurated by President Prabowo Subianto on 17 December 2025, marking the entry of Indonesia’s largest refinery upgrade into commercial operation. Previously, Minister of Energy and Mineral Resources, Bahlil Lahadalia had stated that the RDMP Balikpapan inauguration was planned for 10 November 2025 following a limited cabinet meeting with President Prabowo on 3 November 2025. At the time, he emphasized that the refinery upgrade would enable Indonesia to meet domestic diesel demand entirely through national production. “Insya Allah, starting 2026 we will no longer import diesel,” Bahlil said. “Because our RDMP refinery in Balikpapan will be inaugurated.” Despite the rescheduled inauguration, the government maintains that RDMP Balikpapan will play a decisive role in strengthening fuel self-sufficiency. The facility is expected to significantly increase Indonesia’s refining capacity and support the national objective of achieving zero diesel imports while also boosting aviation fuel (avtur) supply for both domestic and export markets. The RDMP Balikpapan project is designed to modernize one of Indonesia’s strategic refineries by increasing production capacity, improving fuel quality, and enhancing operational efficiency. The refinery upgrade forms part of Pertamina's long-term downstream investment roadmap to reduce reliance on petroleum imports, strengthen supply resilience, and improve state fiscal performance by reducing the foreign exchange burden from imported fuels. In support of the refinery expansion, the government is also pushing for the implementation of B50 biodiesel, which blends 50% palm oil-based fuel. According to Bahlil, the synergy between RDMP Balikpapan and B50 could shift the domestic diesel balance from deficit to surplus. “If both RDMP and B50 run well, we will have excess diesel and we can export it,” he asserted. The ministry is currently calculating the production forecast and export potential once both programs are fully executed. To date, Indonesia has relied on imported diesel to bridge the gap between domestic refinery capacity and fuel consumption. The cessation of diesel imports is expected to reduce logistics vulnerability during global price fluctuations, strengthen energy independence, and improve the trade balance. Policymakers have highlighted that diesel remains a critical fuel for transportation, mining, agriculture, and industrial sectors, meaning its secure supply is closely tied to national economic performance. The RDMP Balikpapan project has been categorized as a strategic national program due to its magnitude and expected economic impact. The government anticipates that its operation will contribute to regional economic activity, promote industrial employment, and accelerate technology transfer in refinery modernization. Stakeholders, including local governments, logistics operators, and energy-intensive industries are monitoring the commissioning timeline as it will determine fuel distribution adjustments across Kalimantan and other regions. Further information regarding refinery output, the detailed implementation roadmap for B50, and mechanisms for potential diesel exports is expected to be released after the inauguration in November. For now, the government maintains the target of achieving diesel self-sufficiency in 2026, marking what could become a significant milestone in Indonesia’s long-term energy security agenda.Writer: Azzahra Luna Prasetyo
Reaching for the Earth's Heart: The Kola Project
For centuries, humanity has looked outward to the stars, the moon and the planets. Yet there is a profound mystery that lies much closer, beneath our very feet: the Earth core. The kola borehole, or known as the Kola Project, represents one of humanity’s boldest attempts to reach the depths of our planet, uncovering secrets hidden beneath the surface.The Kola Project began in 1970 as part of the Soviet Union’s ambitious scientific endeavors. Situated on the remote Kola Peninsula in northern Russia, the project aimed to drill as deep as possible into the earth crust. The ultimate goal was to explore the composition of the earth's interior, understand its physical and chemical properties, and perhaps uncover its formation billions of years ago. Over two decades, the kola borehole reached an unprecedented depth of 12,226 meters (about 40,230 feet) in 1989, making it the deepest artificial point on earth. This incredible feat surpassed previous drilling records and remains unchallenged to this day. Despite the immense depth, the borehole only penetrated unchallenged to this day. Despite the immense depth, the borehole only penetrated about a third of the Earth’s crust, highlighting the vast scale of our planet layers. Drilling to such extraordinary depths posed numerous technical and scientific challenges. Temperatures exceeded 180°C (356°F), far higher than anticipated, making equipment prone to failure. The immense pressure of the drilling process. Despite these obstacles, the kola project provided invaluable insights into the earth’s geology. Among the project’s most significant findings were the unexpected presence of water at extreme depths and the discovery of microscopic fossils in ancient rock formations. These fossils, found more than 6 kilometers below the surface, suggested that life might have existed in environments previously considered inhospitable. Additionally, researchers gathered critical dara on seismic activity, the composition of the earth’s crust and thermal gradients. As technology advances, exploring Earth’s depths remains a compelling dream. Future drilling and robotic technologies could unlock further insights into Earth's history, tectonics, and vital resources. The Kola Project demonstrates that exploration extends to the unseen depths of our planet, reaffirming humanity's drive to uncover its mysteries