Environment ministry yet to give green light for construction of Hemoko Selayar oil refinery

The office of the state minister of environment has yet to give a green light to joint venture company Hemoko Selayar to build an oil refinery on South Sulawesi?s Selayar Island, Kompas daily reported Tuesday.

The paper quoted Minister of Energy and Mineral Resources Purnomo Yusgiantoro as saying Monday that his office had issued a permit to Hemoko Selayar to build the oil refining plant.

?(But) The office of the State Ministry of Environment has yet to complete examination of the Amdal (Environmental Impact Assessment) prepared by the joint venture,? Purnomo told reporters.

The refinery was initially planned for construction this year and was expected to be completed by the end of 2007.

Some people feared that the oil project would cause damages to coral reefs in the Selayar seawaters, Purnomo said.

Hemoco Selayar is a joint venture between Hemoco Kuwait General Trading and Contracting Company (60 percent) and a local firm, PT Kilang Minyak Bumi (40 percent). Hemoco Selayar announced earlier it had planned to build a US$ 2.4 billion export-oriented refinery and petrochemical complex in Selayar Island, South Sulawesi.

Kuwait Petroleum Company will supply crude oil for the refinery. The initial capacity of the facility will be 150,000 barrels per day (BPD) in the first phase, to be increased to 225,000 BPD. Products will include Middle Distillates (kerosene, motor, and diesel fuel). (*)