Russian investors eyeing oil projects in Tanjung Api-api

One Special Economic Zones in Indonesia - Photo by SEZ National Board

JAKARTA (TheInsiderStories) -Russian investor is eyeing oil projects in Tanjung Api-api SEZ in South Sumatra and prepared to invest up to 10 billion euros (over than Rp100 trillion), said one official. Tanjung Api-api SEZ focus on three main industries rubber, oil palm and petrochemical.

“They will develop oil refinery, storage tanks, oil tanks and petrochemical refinery,” Enoh Suharto Pranoto, the secretary of the National Council on Special Economic Zone (SEZ) said last week.

Beside Russian investors, Eno stated, the chemical company PT Indorama Synthetics Tbk (IDX: INDR) is also interested to build regasification industry with total investment Rp12 trillion.

South Sumatra Governor Alex Noerdin recently confirmed the interest of foreign investors in Tanjung Api-api SEZ among others, China-based Shenzen, the largest financial management company.

The National Council of SEZs in March has met PT Palembang GMA Refinery Consortium (PGRC) and its strategic partners, Royal Haskoning DHV, Dassault Systemes, PT Rekayasa Industri, PT Control Systems Arena Para Nusa, PT Usaha Bersama Niaga Hutama And PT Meindo Elang Indah.

PT PGRC is ambitious to build a refinery with a capacity of 300,000 barrels per day and the petrochemical industry as its derivatives. In this case, the company will import crude oil from Iran for processing in Tanjung Api-api SEZ.

The contract for 25 years has been done with the outside party to ensure supply of raw materials for Tanjung Api-api.

The company will build a special port with three terminals for crude with 26 km pipeline, Fuel Terminal and Liquefied Natural Gas. Construction work will begin in May 2019 and they expect groundbreaking to be implemented more quickly, supported by land readiness.

Currently, a feasibility study and preparation of Front End Engineering Design by PT JGC, oil and gas company based in Yokohama Japan is being conducted. The licensor selection and basic engineering process is targeted for completion in June 2017.

Tanjung Api-Api SEZ has the status of Special Economic Zone (SEZ) for export processing, logistic, industry, and energy which was newly launched by the government of Indonesia in 2014. With the total area of 2,030 Ha,Tanjung Api-Api SEZ is located in Palembang, South Sumatera Province. (Linda Silaen)