Anzoil to start LPG production in S. Sumatera in 2002
Thursday, May 3 2001 - 04:30 AM WIB
Australian oil company Anzoil expected Lembak liquefied petroleum gas (LPG) plant in South Sumatra province to start first production in July 2002, the company said in its quarterly report.
The company said it signed an engineering, procurement and construction contract with Niigata Engineering of Japan in March 2001 for the construction of the Lembak LPG facility.
The company expected construction works to start by June 2001 and production was scheduled to start in July 2002.
Anzoil controls the LPG project indirectly through the acquisition of Castle Energy NL, which has 85 percent interest in the project, last year.
Negotiations to secure off take agreements continued with several potential buyers of the export LPG, said the report. Similar negotiations with Dai Ichi Kangyo Bank to secure financing for construction of the Lembak plant were also underway.
According to the company's earlier announcement, the Lembak LPG project is designed to produce 120-130 tons of LPG and 250 bbls of condensate per day for export to the growing markets of South East Asia.
The operations is expected to generate annual turnover in excess of US$13 million annually during 15 years of operations.(alex)