Oil firms in Jambi asked to back local govt plan to build refinery

Jambi governor Zulkifli Nuridin has asked state oil and gas company Pertamina and its production sharing contractor Santa Fe Energy Resources Jabung Ltd to support the provincial administration's plan to build an oil refinery, Sriwijaya Pos reported on Friday.

In a meeting with his office on Thursday, the governor told the two companies' representatives that without their support the province's plan to build its own oil refinery would be difficult to be realized.

According to the governor, President Abdurrahman Wahid and Minister of Energy and Mineral Resources Purnomo Yusgiantoro had expressed their support for the construction of the oil refinery, which would be designed to process about 100,000 barrels of crude oil per day. "A special team has been found to asses the feasibility of the planned oil refinery," the governor said.

According to Zulkifli, the oil production in the province has exceeded 30,000 barrels per day. Santa Fee alone produces about 30,000 barrels per day from its Tanjab and Meraup oil fields while JOB produces about 7,000 barrel per day.

The former chairman of the local chapter of the Indonesian Chamber of Commerce said if the local crude production is not enough, the province would import some of the raw materials from South China.

Both Pertamina and the subsidiary of the United States-based Santa Fe supported the governor's idea during the meeting. "If the plan has received approval from the central government, particularly the board of commissioners of Pertamina, we have no choices but to support the plan," one of the representatives of Pertamina and Santa Fe said in the meeting.

Zulkifli early this week warned Santa Fe to consult the local government before signing any sales contract either for its gas and crude oil. The warning was issued following the signing of gas sales between Pertamina and Santa Fe and a Singapore buyer, which according to the governor, was made without his consent.(*)