Government approves Jambi proposal to build oil refinery plant

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has approved a proposal from the Jambi administration to build a crude oil refinery plant in the province, Kompas reported on Saturday.

Jambi governor Zulkifli Nurdin said in Jambi on Friday that the minister gave its approval for the establishment of the oil refinery during his recent meeting in Singapore.

But the governor said that despite the approval, the minister warned that Jambi would need a great amount of fund to build the refinery. "In addition, the minister also warned that Jambi should have crude oil production of at least 30,000 barrels per day and oil deposit enough for 30 years," the governor added.

The minister has instructed the director general of oil and gas to carry out an intensive survey on the oil reserves in Jambi, the governor said.

According to Zulkifli, the oil production in the province has exceeded 30,000 barrels per day. Santa Fee alone produces about 30,000 barrels per day from its Tanjab and Meraup oil fields while JOB produces about 7,000 barrel per day.

The former chairman of the local chapter of the Indonesian Chamber of Commerce said he was optimistic that the planned refinery could have a production capacity of 100,000 barrels per day. "Some of the crude oil could be imported from South China," he added.(*)