JAKARTA, Nov. 26 (Xinhua) -- Indonesia's state oil firm PT Pertamina will team up with a local company, Wahana Universal, to build an oil refinery in East Java at a cost of 20 million U.S. dollars, local press said Monday.
The two companies had signed an agreement to build the refinery, which will have a total capacity of 6,000 barrels per day, reported local newspaper The Jakarta Post.
The refinery will process oil produced from the major Cepu block oil and gas wells.
Cepu, located along the border between East Java and Central Java, contains an estimated 600 million barrels of oil and 1.7 trillion cubic feet of gas.
Operated by U.S. energy giant Exxon Mobil and Pertamina, the block is expected to produce 25,000 barrels of oil a day when it starts production, targeted for early 2009.
This figure could rise to some 165,000 barrels a day in two or three years of time.
However, the government wants the block to start producing earlier than the target date to help the government meet its target of a 30 percent increase in oil production by 2009.
The two companies had signed an agreement to build the refinery, which will have a total capacity of 6,000 barrels per day, reported local newspaper The Jakarta Post.
The refinery will process oil produced from the major Cepu block oil and gas wells.
Cepu, located along the border between East Java and Central Java, contains an estimated 600 million barrels of oil and 1.7 trillion cubic feet of gas.
Operated by U.S. energy giant Exxon Mobil and Pertamina, the block is expected to produce 25,000 barrels of oil a day when it starts production, targeted for early 2009.
This figure could rise to some 165,000 barrels a day in two or three years of time.
However, the government wants the block to start producing earlier than the target date to help the government meet its target of a 30 percent increase in oil production by 2009.
