Limited crude oil supply affects refinery projects<\/p>\n
JAKARTA (JP): A limited supply of crude oil and the lack of
\nfinancing resources have slowed down the construction of oil
\nrefinery projects in the private sector, an executive of the
\nstate-owned oil company Pertamina says.<\/p>\n
\"Of the investors for seven refinery projects approved by the
\nInvestment Coordinating Board (BKPM) last year, none has been
\nready to start construction,\" Pertamina's director for
\nprocessing, G.J. Atihuta, told reporters here yesterday.<\/p>\n
The sponsors of the seven refinery projects are PT Tanjung
\nUban Refinery in Tanjung Uban of Riau, PT Sumber Catur Daya
\nNusantara Corp. in Pare-Pare of South Sulawesi, PT Asia Pacific
\nPetroleum in Situbondo of East Java, PT Sabang Oil Refinery in
\nAceh, PT Buana Ganda Perkasa and Wisertech Ltd. in Probolinggo of
\nEast Java, PT First Indra Corp. in Sorong of Irian Jaya and PT
\nNorco Internusa and Foster Wheeler in Gresik of East Java.<\/p>\n
All of the investors have actually finalized their feasibility
\nstudies, but most of them are worried about the consistent supply
\nof crude oil, Atihuta said.<\/p>\n
\"It is totally up to them to get supplies of crude oil either
\nfrom private domestic or overseas suppliers, instead of relying
\non Pertamina,\" he said.<\/p>\n
He noted that at least 33 investors have applied to Pertamina
\nfor the establishment of oil refineries, which are now offered to
\nthe private sector.<\/p>\n
Pertamina currently monopolizes the operation of oil
\nrefineries in the country.<\/p>\n
Financing<\/p>\n
In addition to the difficult supply of crude oil, Atihuta said
\nthat private investors are also confronted with the lack of
\nfinancing resources for their projects.<\/p>\n
\"It is understandable because one refinery project with a
\nprocessing output of 100,000 barrels per day (bpd) may cost at
\nleast $1 billion,\" he argued.<\/p>\n
Buana Ganda Perkasa, for example, has a commitment of
\ninvesting $3.50 billion for its project, Asia Pacific Petroleum
\n$1.09 billion and Sabang Oil Refinery $1.58 billion, he said.<\/p>\n
Antara news agency quoted Atihuta as saying in Samarinda on
\nWednesday that Pertamina is now upgrading its refinery in
\nBalikpapan to increase its processing capacity from 250,000 bpd
\nat present to 267,000 bpd.<\/p>\n
\"Pertamina has appointed PT Citra Sena Wibawa to upgrade the
\nplant at a total cost some $170 million,\" he said. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/limited-crude-oil-supply-affects-refinery-projects-1447893297",
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