Minister: Investors interested in mini refinery should apply to government

Minister of Energy and Mineral Resources Ignasius Jonan said that the ministry will not hold tender for mini oil refinery projects in the country, suggesting investors interested in such projects should instead submit directly their plans to the ministry.

Speaking at the opening of the 2017 National Natural Gas Forum on Wednesday in Jakarta, Jonan, as quoted in a statement issued by the ministry?s Directorate General of Oil and Gas, said that arranging tender process for the development of mini refinery projects in the country will only lengthen the process in realizing the projects.

The government has previously launched plans for the development of mini refineries in eight clusters including Cluster I-North Sumatra (Rantau and Pangkalan Susu), Cluster II-Selat Panjang Malaka (EMP Malacca Strait and Petroselat), Cluster III-Riau (Tonga, Siak, Pendalian, Langgak, West Area, Kisaran), Cluster IV-Jambi (Palmerah, Mengoepeh, Lemang and Karang Agung), Cluster V-Sumatera Selatan (Merangin II and Ariodamar), Cluster VI-Kalimantan Selatan (Tanjung), Cluster VII-North Kalimantan (Bunyu, Sembakung, Mamburungan and Pamusian Juwata), and Cluster VIII-Maluku (Oseil and Bula). The mini refinery will have maximum capacity of 20,000 bpd.

Last month, the ministry canceled tender process for a planned mini oil refinery project in Maluku Province, and has decided to assign state-owned oil and gas firm PT Pertamina to develop the project.

Meanwhile, Director General of Oil and Gas IGN Wiratmaja Puja said in the statement that the cluster system introduced by the government could still be used by investors as a basis in determining their mini refinery project plans. ?They (investors) will decide whether a particular cluster is interesting or not. They will then apply for permit to develop (the refinery) in the cluster (they?re interested in),? he said.

Editing by Reiner Simanjuntak