Pertamina delays decision on East Java refinery project
Friday, December 7 2001 - 12:28 AM WIB
State oil and gas firm Pertamina has given Saudi Arabian Hitech Corp. another four month to complete feasibility study of the planned joint venture to build 120,000 ? 140,000 BPD refinery in the nearby area of Tuban, East Java.
Initially, the decision on whether or not to proceed with the project would be made in December this year.
Pertamina?s downstream director Muchsin Bahar told Petromindo.com on a sideline of parliamentary hearing Thursday that the delay was due to financial difficulties on Hitech?s side.
On June this year, Pertamina and Hitech signed a memorandum of understanding to build the US$ 1.3 billion refinery, where the former would assume minority interest.
The crude feed for the refinery is planned to be supplied from ExxonMobil?s oil field in Cepu, East Java, which would commence production in 2003. (alex/godang)