Energy Ministry to Issue Regulation on Mini Refineries This Week
27 June 2016 09:50 WIB
TEMPO.CO, Jakarta-Energy and Mineral Resources Ministry will soon issue a ministerial regulation on the construction of mini refineries. The regulation will stipulate the price formulation, security of supply and incentives.
Energy and Mineral Resources Minister Sudirman Said stated that the draft regulation is being finalized and will soon be signed.
“I will sign it next week,” he said last week, as quoted by Bisnis.com.
According to him, his side had received the draft Ministerial Regulation (Permen) on Development of Mini Refineries.
Director for Downstream Oil and Gas Business Development, Energy and Mineral Resources Ministry, Setyorini Tri Hutami added that the regulation is aimed at mini refineries subsumed in clusters and nonclusters. There will be eight clusters of mini refinery construction, namely cluster I North Sumatra, cluster II Selat Panjang Malacca, cluster III Riau, cluster IV Jambi, cluster V South Sumatra, cluster VI South Kalimantan, cluster VII North Kalimantan and cluster VIII Moluccas.
The mini refineries will be built near the mouth of the well of marginal fields to lower production cost. The production sharing contract contractors (KKKS) managing maginal fields with relatively low production yield have been spending considerable amount of money to transport crude oil to floating storage far away from the marginal fields.