Hi-Tech given one month to show capability of developing Tuban oil refinery
Tuesday, September 24 2002 - 01:30 AM WIB
State oil and gas firm Pertamina said on Monday it had given High-Tech Corp. of Saudi Arabia one month to show its capability to develop an oil refinery in Tuban, East Java.
?If it is found still incapable in one month, we shall take over the project,? Pertamina downstream director Muchsin Bahar told Petromindo.com.
Muchsin said Hi-Tech should show during the coming weeks that it is ready to pay an engineering company to conduct project feasibility study for it. It should also show banks which would fund the project, he added.
In June 2001, Pertamina and Hi-Tech signed a memorandum of understanding to build the US$1.3 billion refinery, in which Pertamina would assume minority interest.
The plan was that crude oil for the Tuban refinery would come from ExxonMobil?s Cepu field in Central Java. (godang)