Oman to invest $7B on new Indonesia refining, petrochemicals complex
5/29/2015 12:00:00 AM
Oman has committed to invest $7 billion to build oil storage facilities, a petrochemical plant and a refinery in Indonesia, news reports said on Friday.
The refinery would be built in Indonesia's Riau province, with the oil products being purchased by state-owned Pertamina.
The project is now in the process of issuing of permits, and groundbreaking is expected to begin in 2016. An agreement was also signed for the supply of crude oil, but details on the amount and price were not disclosed.
Indonesia's fuel output has suffered from a lack of investment in its refining sector since the construction of its last refinery was completed in 1994.
Oil and gas company Pertamina has 1 MMbpd in refining capacity, which it plans to raise to 2.3 MMbpd through upgrades and additional plants.
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