One firm interested to build mini refinery
Tuesday, February 23 2016 - 01:12 AM WIB
The Directorate General of Oil and Gas said the mini refinery projects offered by the government has thus far only attracted one company, PT Indo Kilang Prima.
The firm would like to build a mini refinery with a processing capacity of 3000 bpd in Riau, Director of Downstream Business Oversight Setyorini Tri Hutami said.
?We don?t how many are interested. Only one company, that is PT Indo Kilang Prima, has thus far applied for license. It has been given a temporary license and is now in the process of completing documents for permanent license,? she told Petromindo.com.
The government has offered project to build mini refineries, each with a capacity of up to 10,000 bpd, in eight clusters, located near marginal oil fields. 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).
The mini refinery projects are proposed in order to cut production costs of marginal fields. At present, marginal fields have high production costs because, aside from producing a small amount of output, the operator of the fields first have to take their output to floating storages, which are sometimes located hundreds of kilometers away, before transporting it to refineries . If the oil output is processed near the field, the price of the crude will be significantly lower.
Editing by Johannes Simbolon