Overseas Division (Oil and gas tank construction business)
E-Partners Co., Ltd. has been supporting the oil tank and gas tank construction business in Indonesia since 2016.
This project is Indonesia’s national project to build a stockpiling base for oil and other products on the vast land of Java Island.
Due to the outbreak of the COVID-19 in Indonesia, the construction period has to be revised, but if the COVID-19 is settled to some extent and construction is resumed, the tank capacity will be 20,000 KL (10,000 KL, 5,000 KL, 2,000 KL, 1,500 KL × 2), construction work of 30,000 tons of pier may be completed within 18 months.
Note: Construction will resume in the near future.
[Construction plan] Construction details of the first stage of the first phase (27 hectares)
・ Temporary road construction and road construction
・ Landfill work for ponds in the project area
・ Pier construction for 50,000 ton tankers to come alongside
・ Offshore dredging work
・ Construction of 20,000 KL (10,000 KL, 5,000 KL, 2,000 KL, 1,500 KL x 2) oil tanks
・ Construction of offices, etc.
[Construction results]
・ Temporary road construction and road construction
・ Landfill work for ponds in the project area
・ Revetment work
・ Construction of a pier-mounted causeway for the 50,000 ton tanker side
・ 1,500KL x 2 Oil tank construction (excluding painting)
・ 10,000KL, 5,000KL, 2,000KL Oil tank foundation work (pile driving completed)
Note: The skeleton of the tank has been completed and is being stored at the factory.
・ Construction of main gate
・ Construction of access road
・ Installation of area fence
・ Construction of drainage ditch
・ Construction of a water tank for fire hydrants
・ Construction and pavement of lorry filling facility structures
・ Construction of monitoring post and guard post structures
・ Construction of embankment
・ Construction of concrete pits for buried pipes
[Forecast of future construction]
Future construction will depend on the convergence of COVID-19, but will be resumed in the near future.
・ Temporary road construction and road construction
・ Landfill work for ponds in the project area
・ Pier construction for 50,000 ton tanker side
・ Offshore dredging work
・ Construction of 20,000 KL (10,000 KL, 5,000 KL, 2,000 KL, 1,500 KL x 2) oil tanks
・ Construction of office
In parallel with the above-mentioned first phase (27 hectares) first phase construction, the following will be carried out.
・ Obtaining a permit to operate pier facilities and tank terminals
・ Creation of standard operation procedure manual
・ Preparation for acquisition of ISO quality and business relationship
・ Preparation of future port master plan survey
In Indonesia, the president has already vaccinated in January 2021, and the vaccination to the people will be expanded in the future.
After that, the construction is expected to proceed smoothly.

Situation of COVID-19 in Indonesia

Indonesia is also affected by the COVID-19.
COVID-19 infection was confirmed in Indonesia on March 2, 2020.
By April 9, 2020, the infection had spread to all 34 states in the country.
Jakarta, West Java, and Central Java suffered the most damage, accounting for about 48% of the total number of cases nationwide.
The largest increase in new infections per day was on January 16, 2021, with 14,224 infected people.
As of January 17, 2021, 907,929 infected people have been reported in Indonesia, surpassing the Philippines to become the largest number in Southeast Asia. The death toll is the third highest in Asia.
So far, Indonesia has inspected 5,555,428 people (about 20,606 people per million people) for a population of 269 million.
Note: Indonesia’s population is 269 million, more than double the Japanese population (125.96 million).
Instead of implementing a national lockdown, the government has imposed large-scale social restrictions (Indonesian: Pembatasan Sosial Berskala Besar, abbreviated PSBB) for some prefectures and cities.
Blockades of large cities such as Jakarta and Surabaya have also taken place several times.
Especially in Jakarta, government offices, banks and companies have been closed for a long time. In addition, even now, the rate of attendance at companies is 25% or less, and business restrictions for restaurants and malls are still in place until 7 pm.

Seismic technology for plants in Indonesia

The oil tank terminal that E-Partners is supporting construction in Indonesia is located in Surabaya, eastern Java.
Indonesia is an earthquake-prone country, but Java is a safe location with few earthquakes, especially in the eastern part of Java.
The earthquake hazard map released by the Ministry of Public Works of Indonesia in 2010 also shows that the risk of earthquakes is low in eastern Java.

Since Indonesia is an earthquake-prone country, Indonesian people are also interested in seismic technology.
Regarding seismic observation, BMKG, which is equivalent to the Japan Meteorological Agency, is actively exchanging technology with overseas including Japan.
Major engineering companies such as REKAYASA have been working with major overseas engineering companies such as Japan to improve their technology.
There are many large oil refineries and petrochemical plants in Indonesia, most of which are designed by major overseas engineering companies and major domestic engineering companies.
These engineering companies use international design software and are designed to apply the well-established American seismic design standards.
Even in Indonesia, earthquake resistance standards are being enthusiastically created and revised.

Indonesia’s GDP growth rate fell to 4.63% in 2009 due to the impact of the global recession, but has been steadily increasing since then, and has remained at around 5% to 6%.
Indonesia is a growing market and is attracting attention from the Middle East and Asian countries.

E-Partners will continue to support the completion of the oil tank terminal.

April 2021
E-Partners Co., Ltd.

Introduction of Indonesian Petroleum Stockpiling Base Business

Indonesia is the largest oil producing country in ASEAN, but there is an excess of imports of crude oil.
In the future, it is expected that the amount of oil produced will taper off and it will not be able to keep up with the rapid expansion of domestic demand.
For this reason, the Indonesian government has changed its policy to build a new refinery for export, foster the oil refining industry, and increase exports of petroleum products.

The current oil reserves in Indonesia are about 12 days (end of 2016).
In contrast, Japan’s oil reserves are about 222 days (2017).
Indonesia’s population is 261.99 million (2017), more than double that of Japan’s 127.09 million (2016).

Now that the political and economic base is large and stable, the Indonesian government has set a goal to raise oil reserves to about 45 million barrels for 30 days at an early stage.
The oil stockpiling base that we support development is a development project with an important mission for the development of Indonesian economy based on this national goal.
Given that Indonesia’s 2050 forecast GDP will surpass Japan to become the fourth largest in the world, it seems safe to say that if a tank is built in Indonesia, there will be as much demand as it was built.

In the project site, not only the construction of fuel storage tanks, but also the reclamation work for renting industrial land to major oil companies, and the piers and piers where 100,000-ton class tankers that carry domestically produced crude oil can berth.
Construction of pipelines from to the factory is also underway.
When the final construction period is completed, it will become one of the largest oil storage bases in Indonesia with a total of 800 hectares.

Our staff also visit Indonesia for inspections, and we can confirm that the business is proceeding smoothly every year.
We are always overwhelmed by the vastness of the entire base site and the huge size of each oil tank.

It is exciting to think that we are cooperating with Indonesia’s economic development through the large-scale work of developing an oil storage base.

April 2021
E-Partners Co., Ltd.

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