Jumat 28 Aug 2015 21:45 WIB

SKK Migas proposes plans to build mini refineries

Rep: C09/ Red: Julkifli Marbun
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Foto: VOA
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REPUBLIKA.CO.ID, JAKARTA -- Special Unit for Oil and Gas (SKK Migas) released a study on the construction of a mini refineries in fields that are difficult to reach by conventional transportation.

Head of Public Relations of SKK Migas, Elan Biantoro, explained mini refineries project with a capacity of less than 300 thousand barrels aims to bring nearer oil wells to refineries. So that the cost of transport and maintenance of pipe can be reduced.

"Because the oil pump can cost 35 US dollars per barrel. If the mini refineries could be built close to industrial centers, the cost can be cut," said Elan, Thursday (27/8).

However,  Elan continued, the problem that arises was the certainty of oil supply for mini refineries that will be built. The problem of oil supplies becomes classic excuse of the failed construction of new mini refineries in Indonesia.

SKK Migas is studying the possibility that a refinery can receive an oil supply of more than one field at a time. So that the supply can be maintained.

Meanwhile, President Director of PT Tri Wahana Universal, Rudi Tavinos said his company was ready to undertake construction projects of mini refineries in Java, Sumatra, and Borneo. However, Rudi said it was often hampered by problems of regulation and certainty of supply.

"Current regulation stated that the oil should be given to Pertamina," said Rudi.

Rudi said that currently his company has run a 10-year contract with Exxon Mobil Cepu Limited. This contract includes the construction of mini refineries with a capacity of 16 thousand barrels of oil per day. Technologically, this mini refinery design can be used over 40 years.

Moreover, Rudi asked the government to be able to provide business certainty for the private companies to build mini refineries. The private companies needs to obtain tax allowance and other tax incentives, because the investment to build 10 refineries need investment of 120 million US dollars.

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