Indonesia agrees on oil refinery project with Saudi Arabia, while talks with Iran continue
Azerbaijan, Baku, March 3 /Trend M. Moezzi/
Saudi Arabia has reached an agreement to build in Indonesia an oil refinery while Iran's negotiations for building a refinery in Jakarta enter their sixth year, Pana news agency reported.
The National Iranian Oil Refining & Distribution Company (NIORDC) had offered proposals to invest in building a 150,000 barrel capacity refinery for the Indonesian oil company Pertamina.
Although Iran and Indonesia reached final agreement on the project in 2008, it can only be implemented when shareholders agree it is economically viable. The NIORDC said earlier that preliminary work on the refinery would begin in 2014.
As Iran has worked on getting its refinery project underway, Saudi Aramco has signed an agreement with Pertamina to build a refinery and petrochemical complex with a 300,000-barrel a day production capacity in Indonesia's East Java.
The Tuban Petroleum and Petrochemical complex's products will be sold in Indonesia and other Southeast Asian countries.
Saudi Aramco plans to add 1.2 million barrels a day to its production capacity by 2017. It has signed an agreement to build the Fujian refinery with China's national oil company, SINOPEC.