REPUBLIKA.CO.ID, BONTANG -- PT Badak LNG has made available 2,020 hectares of land in Bontang, East Kalimantan, for an oil refinery project with a processing capacity of 350,000 barrels of crude oil per day.

Vice President for Production of PT Badak LNG Deded Hendra said here Wednesday that the operator of state-owned liquefied natural gas (LNG) plant in Bontang would fully support if the government decided to build the oil refinery in that area.

"PT Badak is very much ready if the oil refinery is to be built in Bontang. There would be no need for money for land clearing as we already have land as well as a seaport and airport," Deded said.

Badak LNG would be the operator of the refinery, he said.

"But it is not our capacity to build the project as we could only provide the facilities to support the operation of the refinery," he added.

He said if the project is to be built in Bontang, the local people would gain such as in jobs to be provided by the project.

The government has program to build a number of new oil refineries to reduce the country's dependence on import for oil fuel.

Plans to build new oil refineries in the past had always failed allegedly caused by 'oil Mafia' to keep the country dependence on imports for oil fuels.

Plans to build ones in Balongan and Banten failed as contractors and the government disagreed on incentives demanded by the foreign investors.

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