Singapore, 26 February 2025 – Oiltek International Limited, through its wholly-owned subsidiary Oiltek Global Pte. Ltd., has signed a Heads of Agreement (HOA) with PT Kilang Pertamina Internasional (KPI), a subholding of Indonesia’s state oil giant Pertamina, to explore a joint venture in Indonesia for the development of a Pre-Treatment Unit (PTU) and feedstock supply for sustainable fuel production.
The proposed partnership will focus on replacing Crude Palm Oil (CPO) with alternative feedstocks such as Palm Oil Mill Effluent (POME) in the production of Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oils (HVO), to meet growing export demand from Western Europe and East Asia.
Strategic Collaboration for the Green Energy Transition
Under the terms of the HOA, Oiltek Global will be responsible for building the PTU and securing feedstock supply, while both parties will contribute resources in proportion to their shareholding in the proposed joint venture. The agreement is valid for one year and is expected to be superseded by definitive agreements outlining the full terms of the collaboration.
The initiative is aligned with Oiltek’s broader strategic direction to create new and recurring income streams through value-added partnerships in renewable energy and sustainable technologies.
“This agreement marks a significant step in Oiltek’s strategic pursuit of sustainable energy solutions and our ambition to contribute meaningfully to the global green fuel supply chain,” said Mr. Henry Yong Khai Weng, Executive Director and CEO of Oiltek International.
Background on the Partners
Oiltek International is a Singapore-listed process technology and renewable energy solutions provider with over 40 years of engineering excellence, serving the global vegetable oil industry across more than 35 countries. Its core capabilities span edible & non-edible oil refineries, renewable energy systems, and process plant engineering.
KPI, the refining and petrochemical arm of Pertamina, plays a central role in Indonesia’s downstream energy infrastructure. With a vision to become a world-class and environmentally responsible oil and petrochemical company, KPI is expanding its biofuel initiatives in line with Indonesia’s sustainability goals.
Oiltek emphasised that while the HOA is a crucial step, there is no guarantee that definitive agreements will be signed or that the joint venture will proceed. Shareholders and investors are advised to exercise caution and await further announcements as discussions progress.
–
About Oiltek International Limited
Oiltek International Limited, an established integrated process technology and renewable energy solutions provider, specialises in the provision of reliable, innovative, diversified, and comprehensive range of refinery processes and engineering solutions for use across all different sectors of the vegetable oils industry value chain globally. The history of the Group can be traced back to its principal operating subsidiary, Oiltek Sdn. Bhd., which was incorporated in Malaysia on 1 December 1980. With over 44 years of track record, Oiltek has successfully designed, built and commercialised plants in more than 37 countries across 5 continents.
Oiltek operates three key businesses – Edible & Non-Edible Oil Refinery, Renewable Energy, and Product Sales and Trading.
For its Edible & Non-Edible Oil Refinery segment, the Group provides engineering, procurement, designing, construction and commissioning (“EPCC”) services for edible and non-edible oil refining plants, downstream specialty products and processing plants; upgrading and retrofitting of existing facilities; and turnkey outside-battery-limits (“OSBL”) infrastructure engineering.
For the Group’s Renewable Energy segment, Oiltek provides services for renewable energy industries including EPCC of multi-feedstock biodiesel, enzymatic biodiesel, winter fuel, and palm oil mill effluent (“POME”) biogas methane recovery plants; upgrading and retrofitting of existing facilities; and turnkey OSBL infrastructure engineering which includes the environmental solutions and integration into steam and power generation.
Oiltek’s Product Sales and Trading segment generates recurring income for the Group, and its services include engineering component sales, agency and distributorship, and specialty chemical product trading.
