Iran, China, Indonesia to build joint refinery

Business Materials 10 June 2015 12:13 (UTC +04:00)

Baku, Azerbaijan, June 10
By Umid Niayesh - Trend:

Iran, China and Indonesia have achieved a tripartite agreement on building an oil refinery in Indonesia, Hassan Khosrojerdi, head of Iran's Oil, Gas and Petrochemical Products Exporters Union said.

The refinery with daily refining capacity of 150,000 barrels of ultra-heavy oil per day will be built in Java Island, Khosrojerdi said.

Feeding the refinery with ultra-heavy oil and supplying some part of the financial resources are among Iranian side's commitments, he said, Iran's Mehr news agency reported June 10.

Chinese investors will undertake financing 85 percent of the project, Khosrojerdi added.
Meanwhile Abbas Kazemi, the Islamic Republic's Deputy Oil Minister said June 3 that Tehran has withdrawn jointly constructing of refineries in some countries including Indonesia, Malaysia, and Syria.

Kazemi did not provide further information on the reasons of Iran's withdrawal of the projects.

Just a year ago, Iran announced that it is preparing to build five refineries in Indonesia with total refining capacity of 300,000 barrels per day, aimed to diversification of Iran's oil export.

Khosrojerdi said that the mentioned five refineries will refine gas condensates, adding construction of the six refineries in Indonesia needs $3.5 billion.

He explained that currently some negotiations are being carried out with National Iranian oil Company and Iran's oil ministry for signing a long-term contract to supply the mentioned refineries with heavy oil and gas condensates once the projects come on stream.

Tehran follows constructing refineries abroad to safeguard its oil export for a long period of at least 20-25 years.

By holding 157 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest reserves of crude oil.

The Islamic Republic also holds 33.6 trillion cubic meters of proven gas reserves, sharing 18 percent of total global gas reserves, which puts the country in the top of the world's gas holders list.

Iran's current oil production is estimated to be around 2.8 million barrels per day of which about one million barrels are exported.