Cilacap refinery resumes operations<\/p>\n
JAKARTA (JP): The refinery of state oil company Pertamina in
\nCilacap, Central Java, which was shut down two weeks ago after a
\nfire, will resume production today at 75 percent of capacity,
\nPertamina announced yesterday.<\/p>\n
\"Production will be increased to 85 percent of the refinery's
\ncapacity next May and to its full capacity by March 1997,\" said
\nPertamina's Director of Processing G.J. Atihuta, after announcing
\nthe resumption of production.<\/p>\n
Atihuta said that lightning struck one of Pertamina's 156
\nstorage tanks at the Cilacap refinery on Oct. 24, starting the
\nfire which destroyed seven of the tanks.<\/p>\n
Seven replacement tanks will be completed by March 1997, he
\nsaid.<\/p>\n
\"PT Chicago Bridge Indonesia, which built all the tanks at the
\nrefinery in the 1970s and 1980s, will construct the seven tanks,\"
\nhe added.<\/p>\n
Atihuta said the fire caused total losses of about Rp 75
\nbillion (US$33.3 million). He said the losses were covered by the
\nstate-owned insurance company PT Tugu Pratama Indonesia.<\/p>\n
The oil products consumed in the fire consisted of 32,000
\nkiloliters (kl) of jet fuel, 19,372 kl of kerosene and 4,378 kl
\nof naphtha. The refinery's total storage capacity prior to the
\nblaze was 28 million barrels.<\/p>\n
The Cilacap refinery, which has two production units with a
\ntotal refining capacity of 300,000 barrels per day, is
\nPertamina's biggest refinery.<\/p>\n
Pertamina currently has nine refineries with a combined
\nrefining capacity of 985,000 barrels per day.<\/p>\n
Atihuta said Pertamina will import oil products to offset the
\ndrop in the Cilacap refinery's output.<\/p>\n
He refused to disclose the volume of the planned imports but
\nReuters reported last week that Pertamina bought 1.6 million
\nbarrels of jet fuel and 2.2 million barrels of diesel oil for
\ndelivery in November.<\/p>\n
Indonesia is projected to consume 45 million kl of fuel oil
\nthis, equal to the country's annual production capacity.<\/p>\n
Atihuta said that Indonesia still needs more refineries to
\nmeet domestic demand for oil fuel, which increases by 6 percent
\neach year.<\/p>\n
The fire was followed by rumors of sabotage, according to
\nwhich the blaze was caused by gunshots and two people have been
\narrested by the police in relation to the shots.<\/p>\n
Atihuta denied such rumors yesterday, reiterating that the
\nfire was caused by lightning and adding that a lightning research
\ninstitution had confirmed this.<\/p>\n
He said the Central Java military command has denied having
\narrested anybody in relation to the fire.<\/p>\n
Atihuta said Pertamina has decided to provide local residents
\nwith compensation for any losses caused by the fire.<\/p>\n
He said losses to the local residents stemming from the fire,
\nincluding damage to houses and water wells, are estimated to come
\nto Rp 70 million. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cilacap-refinery-resumes-operations-1447893297",
"image": ""
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