Private firm to build refinery in E. Java<\/p>\n
JAKARTA (JP): Privately owned PT Asia Pacific Petroleum
\nRefinery Indonesia (APPRI), part of the Nusamba Group, announced
\nhere yesterday that construction of its refinery in Situbondon,
\nEast Java, would begin on Dec. 2.<\/p>\n
APPRI said in a statement that the refinery project, which is
\nto have a capacity of 300,000 barrels per day (bpd), would cost
\nan estimated US$3.2 billion.<\/p>\n
\"The engineering procurement construction (EPC) contract,
\nvalued at $2.3 billion, has been awarded to the consortium of
\nStone & Webster Engineering Corporations of the U.S. and Daelim
\nEngineering Co. Ltd. of Korea on a lump-sum turnkey contract
\nbasis,\" it said.<\/p>\n
The refinery is configured to produce 160,000 bpd of diesel,
\n20,000 bpd naphtha, 60,000 bpd of gasoline and other
\npetrochemical feed stocks.<\/p>\n
More than half of the output will be sold in Indonesia, the
\nstatement said.<\/p>\n
The consortium will have responsibility for the plant's
\nconceptual design, selection of production process, basic and
\ndetailed design, procurement of equipment and materials and the
\nconstruction, it said.<\/p>\n
APPRI added that the consortium had commenced the basic
\nengineering phase of the work, with the commercial operation set
\nto begin in September 2001.<\/p>\n
\"This will be the first privately owned refinery.\"<\/p>\n
The financing structure for the project would reflect APPRI's
\nlong-term supply contracts and the stable cash flow expected once
\noperation began, the company said.<\/p>\n
APPRI, with the assistance of Bankers Trust Company as the
\nfinancial advisor to the project, is negotiating with export
\ncredit agencies in the U.S., Canada, Korea and Japan for a
\nsubstantial amount of credit facilities.<\/p>\n
The company has also engaged in negotiations with Kuwait
\nPetroleum Corporation for long-term crude supply, a Japan-based
\ntrading company for commercial loans and product off-take and an
\ninternational oil refining company for the operation and
\nmaintenance of the plant, it said. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/private-firm-to-build-refinery-in-e-java-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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