Sino Prosper develops new extraction technology for Buton bitumen project

Hong Kong-listed firm Sino Prosper Holdings Ltd said its Indonesian joint venture had successfully developed a new extraction technology for its Buton bitumen project in Southeast Sulawesi, resulting a speed enhancement of 50 percent.

?This helps to reduce the time required for the extraction of oil reserves, the energy used and the overall cost,? Sino Prosper said in a statement to the Hong Kong Stock Exchange on Thursday, adding that first patch of joint venture?s trade in Buton bitumen had been delivered in December 2006.

Sino Prosper has invested in the energy project through its 65 percent-owned venture PT Sino Prosper Indocarbon. The venture was granted an exploration right for the Buton bitumen mine, covering a total area of 22,076 hectares, in September last year. The right has been extended for another year.

Based on an exploration team report completed in September 2006, the Buton bitumen reserve is estimated at around 9.3 million tons.

According to Sino Prosper, the joint venture will engage in the exploration of mineral resources on a 1,150-hectare area of land.

In March, Sino Prosper executive director Tang Yan-tian said the capacity of the plant?s first phase is expected to be at least 1.2 million tons of heavy oil per year, and will reach 500 million tons after five years. Production is expected to start in mid-2007. (Robert)