Mayhill to start building $2b refinery in Sumbawa

Mayhill to start building $2b refinery in Sumbawa

SINGAPORE (Dow Jones): Mayhill International Trading &
Services Ltd., a UK-based company, will begin the construction of
US$2 billion oil refinery and storage facilities early next year
at Indonesia's Sumbawa Island, a senior company official said
Tuesday.

Mayhill Vice Chairman Topek Martopu Sumarinda said the
150,000-barrel-a-day refinery is scheduled to be completed in
2005. Site preparations necessary before actual construction is
to begin in June this year, Sumarinda added.

The company will also construct storage tanks at Sumbawa with
a total capacity of 6 million barrels. The refinery and storage
facilities will be operated by the London-based firm's unit
Mayhill International Trading & Services Indonesia, or MITS Indo,
he said.

The Sumbawa refinery is 100 percent owned by Mayhill, he
added.

Sumarinda said Mayhill received a "sovereign guarantee" from
the Indonesian government in late February regarding its plans to
construct and operate the refinery.

"This means the project isn't subject to nationalization or to
any political changes or issues that arise," he said.