Two American investors will build crude oil refinery in Jambi

Two U.S. investors would build a crude oil refinery in Tanjungjabung, Jambi province, with a processing capacity of at least 30,000 barrel per day, evening daily Suara Pembaruan reported on Saturday.

Jambi governor Zulkifli Nurdin said at his residence on Friday that Minister of Energy and Mineral Resources and state owned oil and gas company Pertamina had expressed their approval on the planned refinery during a recent meeting in Singapore.

The governor said that the local government would be given a 15 percent stake in the refinery. But he did not name the investors that would build the refinery.

But the governor said that despite the approval, the minister warned that Jambi would need a great amount of fund to build the refinery. "In addition, the minister also warned that Jambi should have crude oil production of at least 30,000 barrels per day and oil deposit enough for 30 years," the governor added.

According to Zulkifli, the oil production in the province has exceeded 30,000 barrels per day. Santa Fe 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 he was optimistic that the planned refinery could have a production capacity of 100,000 barrels per day. "Some of the crude oil could be imported from South China," he added.(*)