Lamongan oil shorebase facility in East Java to begin operation in 2006

An integrated oil shorebase facility to be built by PT Lamongan Integrated Shorebase in Lamongan, East Java is expected to begin its operation in the middle of next year, Bisnis Indonesia reported on Monday.

Vice President for Marketing and Business Development of PT Lamongan Integrated Shorebase, Dyah Erowati said in Surabaya on the weekend that the construction of the first phase of the oil shorebase facility covering an area of about 60 hectares was now under preparation.

"The construction of the first jetty will be carried out next month," she said, adding that the construction for the first phase of the oil shorebase facility would cost about US$25 million to build.

The oil shorebase complex will provide warehousing and jetty facilities to a number of oil and gas contractors operating in offshore and onshore oil blocks in East Java.

"Several oil and gas contractors have expressed their interest to use our facilities, including (Indonesian firm) Medco (Energi Internasional), (South Korean firm) Kodeco and (American firm) ExxonMobil," she said, adding that the use of the facilities would significantly reduce the operating cost of the oil contractors which at present mostly used a shorebase facility in Singapore to support their operations.

PT Lamongan Integrated Shorebase, the operator of the oil shore base complex, is a joint venture between PT Lamongan Wira Jatim and Eastlog Holding Pte Ltd of Singapore. (*)