Govt resumes refinery maintenance plan

Government said on Thursday it would allow state oil firm Pertamina to shut down its 200,000-barrels-per-day (bpd) Balikpapan refinery for maintenance as the Iraq war had not disrupted oil supplies as predicted.

Pertamina had planned to shut down the crude distillation unit of the East Kalimantan refinery in the first week of April but said last week it would be delayed due to the conflict in Iraq.

"Our fuel stocks are good for 25 days. There is no problem on the fuel supply and imports have run normally until now. Looking at this situation, we have decided to allow Pertamina to turn around the Balikpapan refinery," Indonesia's Energy Minister Purnomo Yusgiantoro told reporters.

"If it is delayed it could be a danger...in the long run," he added.

Pertamina has said it plans to shut down some units at its Musi refinery in South Sumatra, possibly in May, and its 125,000-bpd Balongan refinery in West Java in August.(*)