Kuwait Petroleum (KPC) will invest $8bn-$9bn on a new 300,000bpd oil refinery on Indonesia’s Java island.
Indonesian Industry Minister MS Hidayat told Reuters that KPC and Indonesia’s Pertamina will sign an MOU at the end of July 2010 for a refinery in Balongan in western Java.
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The investment will help Indonesia to reduce fuel imports where the existing refineries are unable to meet domestic demand.
“A joint venture will be formed within six months,” Hidayat said, adding that crude oil will be supplied from KPC at a discount price.
Pertamina also plans to build new refineries in west and east Java in joint ventures with foreign investors, and to boost capacity at its refineries in Balikpapan, Dumai and Balongan.
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By GlobalData
