The Indonesian government has approved plans to build a 1.5 million m3 oil storage facility on Nipah Island.
The facility, which will be operated by PT Surya Mina Asinusa will utilise a total of 52 hectares of reclaimed land in an attempt to prevent erosion of the island.
Officials say they are in the process of finalising the engineering and design specifications of the new facility, which is expected to cost $500 million (€453 million).
The facility will store oil stocks from the Middle East for both domestic and export needs, according to the company’s general manager Andi Tan.
The island is located in Batam City, 15 minutes from Singapore.