Indonesia to build pipeline from Rokan block to Dumai refinery

[JAKARTA] Indonesia's state gas utility, Perusahan Gas Negara (PGN), said on Friday it will begin construction on a 367km crude oil pipeline on the island of Sumatra in July connecting to the Dumai refinery.

The US$300 million pipeline will connect the Rokan oil block on the island to Pertamina's Dumai refinery, and will be built through PGN's subsidiary PT Pertamina Gas, PGN said in a statement.

Indonesian oil and gas company PT Pertamina is aiming to take over the Rokan oil block from Chevron in August next year.

PGN's director of infrastructure and technology, Redy Ferryanto, said in the statement 250,000 barrels of oil per day will be transported from Rokan to Pertamina's refinery in Dumai, adding the project is due to be completed by the end of next year.

REUTERS