JAKARTA (Yosefardi) – State oil and gas company PT Pertamina plans to build pipe for crude oil distribution from South Sumatra to Musi Refinery, Unit 3, in Plaju, which costs US$400 million.
Pertamina will invite local and foreign investors to bid on the project, with the signing of memorandum of understanding scheduled for end of this month.
The pipe installation will take 92 kilometers length and will distribute 40,000 barrels oil per day. So far, Musi Refinery gets crude oil supply from tankers.
The pipe distribution will save cost of crude oil distribution to US$1.5 per barrel, compared to US$3 per barrel using ships. The pipe installation will take 2 years for completion and after 15 years, Pertamina will own this pipe project.