Jambi, KL firm plan refinery

Jambi, KL firm plan refinery

JAKARTA (JP): The Jambi provincial administration signed on
Wednesday a preliminary agreement with Malaysian oil and gas firm
Sikap on the development of an oil refinery in the province.

The agreement was signed by governor Zulkifli Nurdin and
Sikap's operational director Zainal Osman in the provincial
capital of Jambi, according to Antara news agency.

Zulkfli said the plan for the development of the refinery had
been approved by the central government.

The refinery was planned to have a processing capacity of
100,000 barrels per day (bpd) of oil, 30,000 bpd of which would
be taken from the province's oil production and the remaining
70,000 bpd to be imported from countries like Kuwait, China and
Iran, he said.

He said the development of the refinery was estimated to cost
US$1 billion.

Present at the agreement signing ceremony were oil and gas
companies operating in the province, including American firm
Santa Fe Energy and Canadian firm Gulf Indonesia Resources. (jsk)