JAKARTA: Quest Petroleum NL is expecting positive impact from Indonesian Government's plan to build a crude oil refinery in South Sumatera by 2013, in order to meet increasing domestic fuel requirements.
The Government is currently confirming the suitability of the intended location and expects to commence construction of the refinery in 2013, with estimated completion and operation start-up in 2017.
State-owned oil & gas company PT Pertamina will construct the refinery, which is expected to have capacity of 300,000 barrels of oil per day.
“The Government’s decision comes as existing refinery capacities in Indonesia are no longer sufficient to meet the soaring levels of oil consumption in the region,” said Gus Simpson, Quest Petroleum Chairman today in an information disclosure submitted to Australia Stock Exchange (06/22/2012).
Quest Petroleum is currently preparing to drill its first exploration well in Ranau PSC. The location for the initial well has now been finalized and drilling rigs and materials are being sourced in preparation to drill.
Over the past 12 months exploration in South Sumatera has seen multiple wells with commercial oil and gas shows. Several of these discoveries are currently under development with the intention to sell hydrocarbon to domestic and foreign markets.
“The decision to construct a refinery of this scale demonstrates the significant increase in domestic demand for fuels as well as the level of investment the government is committing to the region. This is a very possible development for the South Sumateran oil industry at a time when Quest is expanding its activity here and preparing to drill its Ranau PSC,” said Gus Simpson stated.
Quest acquired onshore Ranau oil and gas exploration prospect in South Sumatra, Indonesia from Merric Capital Pty Ltd, through its subsidiary PrabuEnergy Pty Ltd In July 2011. With the acquisition, Quest has 80% interest in Ranau PSC which covers approximately 2,123km2 in onshore South Sumatra.(T03/TW)