Honeywell International Inc.’s (HON) wholly-owned subsidiary UOP LLC was recently selected by PT Pertamina to develop a master plan to improve operational flexibility and augment the production of petrochemicals. Pertamina is Indonesian state-owned oil and natural gas corporation based in Jakarta.
UOP will prepare a “bankable feasible study” to recommend modernization plans for five largest refineries of Pertamina. These include refineries in Balikpapan, East Kalimantan; Cilacap, Central Java; Dumai, Riau; Plaju, South Sumatra; and Balongan, West Java.
The feasibility study, partially funded by a $1.07 million grant from the U.S. Trade and Development Agency, will focus on viable methods for upgrading the refineries for processing heavier lower-quality crude oil. At the same time, UOP will also evaluate the viability of a centralized terminal for crude imports.
Honeywell's UOP has been associated with Pertamina since 1972, providing various technological licenses that are currently used in all of its refineries. Thus, the current tie-up further reinforces their long-standing business relationship.
Headquartered in Des Plaines, IL, UOP is a premier supplier of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries across the globe. It is part of Honeywell's Performance Materials and Technologies strategic business group.
Based in Morris Township, NJ, Honeywell manufactures a wide range of aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation.
Honeywell organizes its business into four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. Honeywell’s diversified business portfolio mitigates operating risks and enables it to earn consistent above-average returns.
Honeywell has a Zacks Rank #3 (Hold). Other players in the industry worth mentioning include LSB Industries Inc. (LXU), ITT Corp. (ITT) and Marubeni Corp. (MARUY), each carrying a Zacks Rank #2 (Buy).
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- PT Pertamina