OSO Group has unveiled plans to partner with the State Oil Company of the Azerbaijani Republic (SOCAR) to build a $4.8bn oil refinery next to Batam Island in Indonesia.
The joint venture refinery will be built on OSO’s concession in a free trade zone which will be beneficial to the busy east Asian shipping lanes.
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The partnership is expected to formalise the deal in November 2012.
The proposed refinery is expected to process 600,000 barrels per day once it begins operations in 2017.
OSO Group CEO Mariano Asril was quoted by Reuters as saying the company intends to refine all the group oil from Azerbaijan.
"The purpose is to trade or sell the processed oil to Indonesia or any other Asia-Pacific country," said Asril.
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By GlobalData"It would be funding from both (sides) but mostly from the Azerbaijan side but we will provide them with all the facilities, the permit, the land and everything."
OSO may sign a memorandum of understanding in November with SOCAR, which has joint ventures with other international partners.
The refinery will be SOCAR’s first project in Indonesia.
