IRAN, INDONESIA AGREE TO BUILD OIL REFINERY IN BANTEN
Antara News Agency - March 12, 2008The governments of Iran and Indonesia agreed to realize the construction of an oil refinery in the Indonesia`s province of Banten with a production capacity of 300,000 barrels per day, the Indonesian has said.
Visiting Indonesia`s President Susilo Bambang Yudhoyono made the statement in a press conference on Tuesday night.
The cooperation, he said, would involve Indonesia`s state oil company PT Pertamina, the National Iranian Oil Refining and Distribution Company (NIORDC) of Iran and Petrofield Refining Company Ltd. (Malaysia).
"The composition of shares will be 40 percent for Pertamina, 40 percent for Iran and 20 percent for Malaysia," he added.
He expressed hope that with the presence of the expected new oil refinery to be worth US$6 billion, the fuel oil supplies at home would increase.
He said the two countries would indeed focus the bilateral cooperation on the energy sector, mainly on petroleum and gas.
He further said Pertamina would take part in a bid for oil exploration in Iran.
Besides the agreement, he added, the two countries also agreed on the cooperation between state fertilizer company PT Pusri and its partner in Iran by setting up a petrochemical factory which was expected to maintain fertilizer supplies.
The head of state also stressed the importance of selecting a partner company that would give advantages to the people, unlike in the past when mining projects were not in favour of the people.
Although Iran was being a target of embargo in some sectors, he believed the programs would be financially safe.
Source: Antara News Agency - www.antara.co.id