It is not easy to obtain a crude supply of 300 thousand bpd.Jakarta (ANTARA News) - The Indonesian government will allocate Rp300 billion next year for the basic engineering design (BED) of an oil refinery with a capacity of 300,000 barrel per day, an Energy and Mineral Resources Ministry official stated.
"We will call a tender for the BED in January next year," the ministrys director of oil and gas downstream business development, Mohammad Hidayat stated here, on Tuesday.
The BED will be built after the state oil and gas company Pertamina completes a feasibility study on the project in December, he noted.
"The state budget fund of Rp250 billion, which was originally been planned to build a refinery in 2013, will be allocated next year," he confirmed.
He assured that the construction of the BED will be completed in one year.
In 2015, the government will build a front end engineering design (FEED) and conduct a study on the location for the refinery, he added.
"The construction of this FEED will also be completed in one year, so in 2016 or early 2017, the construction of the refinery can begin," he emphasized.
The engineering, procurement and construction (EPC) of the project will last for four years and therefore, the refinery will start operations in 2021, he confirmed.
During the EPC phase, the project will be funded by the state budget under a multi-years scheme, he stated.
He added that his side was still negotiating with the Iraqi government on the supply of crude oil to the refinery.
"It is not easy to obtain a crude supply of 300 thousand bpd," he explained.
(Reporting by Kelik Dewanto/Uu.INE/KR-BSR/A014)
Editor: Priyambodo RH
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