Intanjaya to start construction of S. Sulawesi oil refinery next year

Local company PT Intanjaya Agromegah Abadi is planning to start construction on a US$3.5 billion oil refinery project in Parepare, South Sulawesi province, next year, with commercial production slated to begin in 2010.

?We planned to start the EPC (engineering, procurement and construction) stage of this oil refinery project early next year,? Intanjaya president Mappasulle told reporters on Monday.

Mappasulle said the 48-month EPC will be carried out by investor, who has extensive experience in coordinating EPC work on similar projects both in and out site.

The government through the Investment Coordinating Board (BKPM) approved the refinery project last October.

The plant is designed to have a capacity to process around 300,000 barrels of oil per day. Mappasulle said the crude oil for the refineries would be imported from the Middle East.

Intanjaya is expected to export some 90 percent of the refinery?s production to Asia Pacific markets, while the remaining products will be allocated for the domestic market, Mappasulle added.

Intanjaya and American firm Inter Global Technologies have formed a joint venture company, PT Kilang Minyak Intan Nusantara, to develop the project. (godang)