Govt considers developing new oil refineries

The government is considering to develop new oil refineries in the country in order to boost domestic fuel supply and reduce imports, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Tuesday.

?We are making preparations to build new oil refineries to fulfill rising domestic demand, thus reducing imports,? Purnomo told reporters.

The government?s oil and gas firm Pertamina presently owns nine oil refineries Pangkalan Brandan (North Sumatra), Dumai (Central Sumatra), Sungai Pakning (Central Sumatra), Musi (South Sumatra), Balikpapan (East Kalimantan), Balongan (West Java), Cilacap (Central Java), Cepu (Central Java), and Kasim (Papua).

Purnomo said the government has yet to carefully calculate domestic fuel demand before deciding the number of new oil processing plants to be built. He added the government may also offer local and foreign investors to develop oil refineries in Indonesia as the country?s new oil and gas law which took effect in November last year allows them to do it.

Official data says present domestic demand for fuel stands at about 52 million kiloliters annually, of which 15-20 percent is fulfilled with imports.

Pertamina said in February it was offering local and foreign investors to develop two oil refineries in the country with a combined capacity of 125,000 barrels per day. But it remains unclear whether any investor has made any commitment. (godang)