Elnusa plans feasibility study to build 300,000 bpd oil refinery

Engineering services company PT Elnusa, a subsidiary of state-owned oil and gas firm PT Pertamina, plans to carry out a feasibility study to build a 300,000 barrels-per-day oil refinery next year, a company official said Wednesday.

?The refinery is to be located either in Banten, southern part of Central Java, or Riau provinces,? Elnusa president director Rudy Radjab said, adding that Elnusa would need around US$2.5 billion of investment for the project.

Construction phase of the project is scheduled to start in 2007 and it is expected to commence operation by 2009, Rudy said.

Rudy added that the refinery would put out fuel products and naphtha. Elnusa plans to export about 70 percent of the products with the rest to be sold on domestic market.

Meanwhile, an official at the directorate of oil and gas said Wednesday that Elnusa had not yet submitted the proposal to build the refinery.

?Currently, there are three companies who have submitted proposals to build oil refineries. The companies are Muba with capacity of 500,000 bpd, Hemoco Selayar (250,000 bpd), and PT Intan Jaya (300,000 bpd),? director of processing at the directorate Erie Sudarmo said.

Erie added that the government had approved the three companies? proposals. (godang)