Delta Mutual in Indramayu oil sludge deal

US firm specializing in energy recovery and construction services Delta Mutual, Inc. announced on Thursday the start of revenue from operations at the company's first permanent oil sludge processing facility in Indramayu, West Java through its Delta-Envirotech subsidiary's local joint venture, PT. Tryhuda-Envirotech.

The initial unit is processing oil sludge under a contract with state oil and gas company Pertamina, which operates Balongan refinery in Indramayu. The oil recovered from the processed sludge is being returned to the refinery.

For the last 15 days of December, 2005, an average of 14 tons of sludge a day were processed. Operations continued to scale up in January. The facility, which commenced production on December 15, 2005, can process up to 200 metric tons of oil sludge per day, depending on the density of the sludge.

The contract covers the payment of $100 per ton for the processing of approximately 3,000 metric tons of sludge from designated sludge pools with a completion date of not later than April 21, 2006. (alex)