Mini refinery to be built near Tonga block
Wednesday, June 24 2015 - 01:17 AM WIB
IDX-listed PT Energi Mega Persada Tbk. (EMP) is currently in discussion with a company on plans to build a mini refinery at the Tonga block which is located between Dumai in Riau and Sibolga in North Sumatra, according to a top official of the firm.
"There is a company willing develop a mini refinery with a capacity of 5,000 bopd. It plans to build the refinery in Tonga area to cut transportation costs," EMP's President Director Imam Agustino told Petromindo.com, without naming the company.
According to Imam, Tonga?s production wells are located in remote areas, far from the existing terminal or offloading facility. As such, the crude will be delivered through a pipeline to the refinery or transported using barges.
"That company has begun preparation on site and started some fabrication. The mini refinery is projected to be completed in 2017,? he said.
Meanwhile, Imam added, EMP has suspended production at Southeast Tonga-1 well due to the low oil price and high costs. ?We are looking for other alternative way of production,? he said.
The Tonga block is 94.29 percent owned and operated by PT EMP Tonga, 5 percent by PT Petross EP, and 0.71 percent by Rahina Dewayani.
Editing by Johannes Simbolon