Jambi cancels plan to build refinery

The Jambi provincial government has cancelled a plan to construct a 100,000 barrel-per-day refinery plant due to the lack of crude oil from the province?s oil fields, Sriwijaya Pos reported on Friday.

However, Jambi Governor Zulkifli Nurdin said that the province would instead build a small oil refinery, with a processing capacity of about 12,000 barrels per day. The mini refinery plant will be built under the Chinese technology in Tanjamb Timur regency, he added.

?Our oil reserves are declining. That?s why we have canceled the construction of the planned 100,000 barrel-per-day refinery. We will instead build a small refinery in Tanjab Timur regency,? he was quoted as saying by the newspaper.

According to the governor, the small refinery will be built in next four to five months, and it operates it will obtain crude oil supply from two companies Devon Energy and Gulf Indonesia Resources, which operate oil fields in the regency.

"I have met executives of the two companies and they have agreed to supply the refinery plant,? the governor said, adding that the two companies would not be allowed to sell their crude oil outside Jambi. (*)