REPUBLIKA.CO.ID, JAKARTA -- An Iranian oil and gas company said it is ready to supply crude oil to feed Indonesian oil refineries, an official said here on Thursday (6/11).
Care taker Oil and Gas Director General Naryanto Wagimin said the Indonesian government welcomes the offer.
"We will discuss that matter further in a working group," Naryanto said after accompanying representative of the Iranian Energy Ministry to a meeting with the Energy and Mineral Resource Minister Sudirman Said here on Thursday.
He said the Iranian embassy said crude oil from Iran meets the specifications needed by the Cilacap oil refinery of the state oil and gas company PT Pertamina.
He said Iran also wants to renew talks on cooperation to build an oil refinery, negotiations on which halted recently.
Under the scheme the refinery would be built in cooperation with Indonesia company with crude oil to be supplied from Iran.
"The minister is enthusiastic with the plan to build the refinery. Therefore a working group would be formed<" he said.
As for the incentives asked by the investor, discussion would be held further, he added.
"I have heard about an Indonesia investor wanting to build an oil refinery , but there was no progress made so far," he said.
In 2007, Iran through its oil and gas state company National Iranian Oil Refining and Distribution Company (NIORDC) indicated interest in building an oil refinery with a processing capacity of 300,000 barrels of crude oil per day to cost around US$6 billion.
The plan dated back to a meeting between former President Susilo Bambang Yudhoyono and former Iranian President Ahmadinejad.
The project was to be built in Bojanegara, Banten, in cooperation with Pertamina with NIORDC to have a 40 percent stake, Pertamina 40 percent and Malaysian Petrofield 20 percent.
The refinery would be operated by a joint venture company named PT Banten Bay Refinery.
The project was already approved by the Oil and Gas Directorate General on 27 May, 2008 and the Capital Investment Coordinating Board on 27 November 2008.
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