JAKARTA: PT Pertamina (Persero) will relocate Balongan refinery in Indramayu district, West Java to Kalimantan.
General Director of Oil and Gas at Ministry of Energy and Mineral Resources Evita Legowo said that Pertamina is thinking about a series of incentives which have been asked by Kuwait Petroleum Corporation, the government must also think about the land procurement.
"There is one thing should be considered, the status of the land for the refinery has to be clear. Balongan takes a lot of efforts to go on as we have to dredge it first. Frankly, we and Pertamina are still looking for other suitable place, maybe Kalimantan. East Java is hard," he said at the sidelines of the Panel Discussion of Oil and Gas Upstream Business Opportunities in Indonesia today (10/7/2012).
Evita said besides the high price of land in Balongan, relocation was done to utilize Pertamina’s land. However, the government is not yet decided the location for the relocation.
"Probably Kalimantan, near Bontang. We look for available land," he said.
Meanwhile for the joint venture Tuban refinery which is worked along with Saudi Aramco Asia Company Limited, the government, and Pertamina will be relocated also as the land price is too high and the availability of land is insufficient. (T03/TW)
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