Govt to build oil refinery plants in S.Sumatra
Thursday, October 4 2012 - 12:14 AM WIB
The government has decided to develop two oil refinery plants in two locations in South Sumatra with financing from the state budget.
The locations are in Plaju-Sungai Gerong and Katimpah Bengkok, which are both in South Sumatra province and owned by state oil and gas PT Pertamina.
The energy and mineral resources ministry?s Oil and Gas Director General Evita H. Legowo said that the long awaited refinery plants would cost about Rp 90 trillion, which would be totally derived from the state budget.
But she said that the Katimpah Bengkok location would have yet to undergo a land clearing process.
?The plants are scheduled to start operation in 2019. But we?ve asked to expedite it to 2018,? said Evita early this week.
According to her, in 2013 the plants? basic engineering design and front engineering design will be made, while constructions will be started in 2016.
Evita said that the government had now insisted to develop the refinery plants with the state budget, as it had offered it to private companies since 1998 but from 20 firms proposing to develop the oil refinery plants, none of them has managed to realize their plans.
Among them was state oil and gas company PT Pertamina, which had planned in cooperation with Kuwait firm and Saudi Aramco, to develop the oil plants. But so far, there has been no agreement between them.
Editing by Benget Besalicto Tnb.