Ministry drafting regulation on mini refinery

The Ministry of Energy and Mineral Resources is drafting a regulation on mini refinery projects which is being offered by the government to investors, the Directorate General of Oil and Gas said in a statement on Friday.

The regulation will contain among others aspects such as pricing formula, crude supply certainty and incentives, Director General of Oil and Gas IGN Wiratmaja was quoted as saying on Thursday on the sidelines of the ceremony to inaugurate a city gas network, CNG station and gas transport modules (GTMs) in Cikarang.

The ministry earlier announced plans to build mini refineries in eight clusters near marginal oil fields and the projects will be offered to private sector.

The eight clusters are North Sumatra (Cluster 1), Selat Panjang Malaka (Cluster 2), Riau (Cluster 3), Jambi (Cluster 4), South Sumatra (Cluster 5), South Kalimantan (Cluster 6), North Kalimantan (Cluster 7) and Maluku (Cluster 8).

Director of Oil and Gas Program Oversight Agus Cahyono Adi said on Monday that the mini refineries will built at the wells of marginal fields in order to cut costs.

Editing by Johannes Simbolon