Iran, Indonesia Oil Firms Plan to Build Refinery

From The Peninsula Qatar

An Iranian oil firm and an Indonesian company are looking to build a refinery in the southeast Asian nation worth at least $3bn, officials said, as the two countries seek stronger investment ties with the easing of sanctions on Iran.

Indonesia is desperate to expand its refining capacity to be less dependent on oil imports, but attracting partners has been difficult with government talks between Kuwait Petroleum and Saudi Aramco recently stalling over tax issues.

For the last 10 years, no projects have moved beyond the initial planning stages.

Tehran-based Nakhle Barani Pardis (NBP) signed a memorandum of understanding (MoU) with PT Kreasindo Resources Indonesia to explore the feasibility of setting up the refinery, which will have a capacity to process as much as 300,000 barrels per day of heavy Iranian crude oil.

Kreasindo may also purchase for the long term up to 300,000 barrels per day from NBP, and the Iranian company is willing to invest up to 30 percent for “realization of the refinery”, according to terms of the MoU.

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