Sinopec to send team to assess construction of Tuban refinery

Chinese company Shanghai Petrochemical Co (Sinopec) will soon send a team of experts to Indonesia to carry out a technical study on plans to build a refinery in Tuban, East Java.

Pertamina's president director Widya Purnama said in Jakarta on Friday that the Chinese company's team of expert would assess the technical factor, financing and crude oil supply for the Tuban refinery plant.

"We hope the assessment could be completed within the

next few months so that the construction of the refinery could be commenced at the end of this year," he said. He added that the investment for the construction of the plant, which is planned with the oil processing capacity of between 150,000 and 200,000 barrels per day, was estimated to reach US$1.6 billion.

Pertamina and Sinopect signed a memorandum of understanding to jointly develop the refinery during the recent visit of President Susilo Bambang Yudhoyono to Beijing.

The crude oil for the refinery plant would possibly

imported from Saudi Arabia and Kuwait, or taken from Cepu and Jeruk oil fields, he added.

Widya also said Sinopec had also expressed interest to enter the country's oil and gas upstream sector.

"Pertamina has offered the company to cooperate in the development of brown oil fields (old oil fields)," he added. According to him, in addition to Sinopec, the opportunities to cooperate in the development of brown oil fields have been also offered to other companies. (godang/dino)