Kilanindo to build 150,000 bpd refinery in Situbondo

By Godang Sitompul

PT Kilanindo Golden Star is waiting for approval from the Ministry of Energy and Mineral Resources for its plan to build a 150,000 bpd refinery in Situbondo, East Java.

President Director Rudi Radjab said the firm will get financing from China to develop the refinery and crude from Iran as feedstock.

?The Situbondo refinery will operate using crude from Iran. Permit from the National Investment Coordinating Board (BKPM) (for the project) was issued in the past August. It is now in the Bankable Feasibility Study with financing expected from Exim Bank China. The EPC works will be carried out by Sinopec and CPEEC. We are waiting for a presidential regulation to ensure Pertamina will be the offtaker and we receive tax holiday,? he said.

The government is drafting a regulation to appoint state owned oil and gas firm PT Pertamina (Persero) as the offtaker of products of private refineries and to provide tax holiday for the development of refineries.

Editing by Johannes Simbolon