Indonesia expects to have 2 oil refineries

JAKARTA - The Indonesian government forecast the completion of the construction of two oil refineries by 2018 and another by 2019, which could help boost oil security of the Southeast Asia's largest economy, an official said Wednesday.

Energy and Mineral Resources Minister Jero Wacik said that two of the refineries would be built in Bontang of East Kalimantan and the location for the other was being considered.

The two refineries had production capacity of 300,000 barrel per day, the minister said.

"The new refineries are expected to help solve the problem of oil supply in the country," he said.

Indonesia has proven oil reserve of 4,303.10 MMSTB and potential oil reserve of 3,695.39 MMSTB, according to data from the oil and gas regulator of BP Migas.

Indonesia has struggled to boost oil production which has dwindled in recent years due to aging wells and lacking of fresh investment.

Indonesia imports both crude oil and refined products as the country's oil production has started to decline since 1998 and resulted in its exit from OPEC in 2009.

Indonesia failed to reach oil production target of 950,000 barrel per day in 2010 due to leaking on piping.