Banten refinery to start construction in 2009

The construction of a new refinery by state owned oil and gas company PT Pertamina and partners in Bojonegara, Serang regency, Banten will start in 2009.

Pertamina?s VP for Business Development Plan Priyo Utomo said in Jakarta on Thursday that the new refinery which would be built by Pertamina together with investors from Malaysia and Iran was expected to begin commercial operation in 2013.

According to him, the feasibility study on the project by a French firm is in progress and expected to be completed in four months.

In March 2008, Pertamina signed an agreement with National Iranian Oil Refining & Distribution Co. (NIORDC) and Petrofield Refining Company of Malaysia to build the US$6 billion refinery.

Pertamina and NIORDC would each have a 40 percent stake in the refinery, with Petrofield holding the other 20 percent.

During Phase One, the refinery will run at 150,000 barrels of oil per (bpd) day and the operation will be expanded to the full processing capacity of 300,000 bpd, Pertamina's President Director Ari Soemarno said on March 11, 2008.

?Iran is committed to supplying half of the crude oil needs of the refinery, that is 150,000 bpd,? NIORDC President Mohammad Reza Nematzadeh said. (*)