JAKARTA (converse-technologies.com) – The Indonesian government is planning to build mini oil refineries in 8 clusters as a move to reduce costs, according to Director for Oil and Gas at the Energy and Mineral Resources Ministry (ESDM) Agus Cahyono Adi.
The mini refinery plants will be built at Cluster I North Sumatera, Cluster II Selat Panjang Malaka, Cluster III Riau, Cluster IV Jambi, Cluster V South Sumatera, Cluster VI South Kalimantan, Cluster VII North Kalimantan (Kaltara) and Cluster VIII Maluku.
The construction of the mini refinery plants will be tendered to private sectors. He said the mini refineries will be built near the marginal oil fields. At present, the production sharing contractors (PSCs) develop marginal oil fields at high costs as the production from these fields are relatively low. The costs to produce oil from these marginal fields are covered through cost recovery scheme, therefore if the costs are reduced it also helps the government in reducing expenditures.
The mini oil refinery plants will have capacity to produce or process 10,000 barrels of oil per day.
He said in Cluster I, the mini refinery will be built near Rantau and Pangkalan Susu blocks; in Cluster II Selat Panjang Malaka, mini refinery will be built near Emo Malacca Strait and Petroselat blocks; in Cluster III Riau, mini refinery will built near Tonga, Siak, Pendalian, Langgak, West area blocks.
In Cluster IV Jambi, mini refinery plant will be built near Palmerah, Mengoepeh Lemang and Karang Agung blocks; in Cluster V South Sumatera, a mini refinery will be built near Merangin III and Ariodamar blocks; in Cluster VI South Kalimantan, a mini refinery will be built around Tanjung block; in Cluster VII North Kalimantan, a mini refinery will be built near Bunyu Sembakung, Mamburungun and Pamusian Juwata blocks; while in Cluster VIII Maluku, a mini refinery will be built near Oseil and Bula blocks.
He said companies that have the capacity to build oil refineries are Pertamina, TPPI and TWU. However, other companies may take part in the tender. (*)
News Received from www.rambuenergy.com
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