Firm to build oil refinery

Firm to build oil refinery

JAKARTA (JP): PT Asia Pasifik Petroleum Indonesia, a British- Indonesian joint venture led by businessman Bambang Trihatmodjo, will start construction of an oil refinery in East Java in 1997.

Company president Soedradjat P.K., after meeting with East Java Governor Basofi Soedirman in Surabaya Tuesday, said that the refinery will be built on a 600-hectare plot in Situbondo with an investment of US$1.5 billion. It will be capable of producing 150,00 barrels per day (bpd).

"We hope the refinery will start operating early in 2000," he was quoted by Antara as saying, adding that it will produce gasoline, kerosene, diesel oil and liquefied petroleum gas.

He said that British Virgin Island will own the majority of shares and businessmen Bambang Trihatmodjo, Bambang Yoga Sugomo, Yohannes Kotjo and Wisnu Suhardono will have minority stakes.

The planned refinery will be the second to be established by the private sector in East Java. A refinery with a processing capacity of 300,000 bpd is to be built by business tycoon Probosutedjo in Probolinggo with an investment of more than $3 billion.(riz)