JAKARTA: The government of Indonesia is ready to build oil refinery faculities besides the development plan of Balongan II and Tuban refinery with a total investment of IDR90 trillion.
Director General of Oil and Gas at Ministry of Energy and Mineral Resources Evita Legowo said the government had allocated a budget of IDR1 trillion in the 2013 budget for conducting feasibility study and other preparations.
"The fund of IDR90 trillion will be allocated for the petrochemical and refinery. These funds are mostly from the government, whether Pertamina has a contribution or not, needs investors or not, it will be reviewed later. Now, the government intends to build a refinery. We did not want to wait anymore, "she said on Friday, June 8, 2012.
Evita said the refinery was designed for a capacity of 300,000 barrels per day. Next year the government will initiate a feasibility study to assess the exact location as well as to find the supply of crude oil.
"The location is still under reviewed which one is best. Of IDR1 trliun including funds for the location study, "she said.
After the completion of feasibility study, the construction and the refinery is expected to be operated in 2019. Evita said the government is also seeking the sustainability of crude oil supply to new refineries.
As it is known, Pertamina has partnered with the Kuwait Petroleum Corporation (KPC) to the project II Balongan refinery in Indramayu, West Java and also with Saudi Aramco for the refinery project in Tuban in East Java.
Each of the refineries have capacity of 300,000 bpd.(T03) (Vega Aulia Pradipta) (t03/msw)
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