ConocoPhillips to use barges to transport crude oil in South Sumatra

ConocoPhillips has decided to use barges to transport its crude oil from oil wells in Banyuasin regency, South Sumatra, to the Plaju refinery plant located near the province's capital of Palembang, Sumatera Express reported on Wednesday.

Iskandar Machmud, the spokesman for the oil company, said that ConocoPhillips would operate at least six barges to transport the crude oil beginning April 1, as the best transportation alternative available to prevent another leakage in the existing pipeline.

Up to now, ConocoPhillips leases Pertamina's aging pipelines to transmit its crude oil to the Plaju refinery plant. A recent leakage in the pipeline has caused a serious environmental problem in one of the Banyuasin districts.

Machmud, however, refused to comment when asked if ConocoPhillips had suspended its contract to use Pertamina's pipeline. "It is a secret deal between the two companies. I cannot disclose it to the public," he said.(*)