Indonesian, South Korean firms sign $8.5b deals today

Indonesian and South Korean companies are scheduled to sign several energy and energy related deals worth US$8.5 billion today (Wednesday) in Seoul, marking the closer ties between the countries in the sectors.

 

President Susilo Bambang Yudhoyono, who is in the country for a three-day visit, including meeting President Roh Moo-hyun, will witness the signing of the deals.

 

Among the biggest deals are a coal liquefaction project worth $5.5 million to be signed by Indonesian firm PT Nuansa Cipta Coal Investment together with South Korean giants Kenertec Co., Posco Engineer & Construction Co. Ltd., Samsung Securities Co. Ltd; and a S$2 billion railway project in East Kalimantan to be signed by the East Kalimantan Provincial Government, PT Kereta Api, PT Nuansa Cipta Coal Investment and Kenertec Co. Ltd, Posco Engineering & Construction Co. Ltd

 

Following is the list of the projects:

No	Names of Companies	Business Line/Project	Project Location	Investment Value (US$ million)	Agreement Form	Remarks
1	PT Pertamina and SK Corporation	Revamping plant capacity from 124,000 bopd to 200,000 bopd	Dumai, Riau	150	Letter of Agreement (LoA)
2	PT Pertamina and SK Energy	Lubricant Co-Branding	Jakarta	3	Head of Agreement (HOA)	Also possible to market outside Indonesia
3	PT Pertamina, KNOC and SK Corporation	Joint cooperation on E&P Projects	Shiarak Area, Sumatra	25	Letter of Intent (LOI) (continuation of the previously signed MoU)	Also possible to cooperate outside Indonesia
4	PT Pertamina and Korea Gas Corporation (KOGAS)	Joint Cooperation Pertamina - Korea Gas Corporation	Jakarta	25	LOI	Also possible to cooperate outside Indonesia
5	PT PERTAGAS (Subsidiary of PT. Pertamina) and E1 Corporation	South Sumatra NGL Plant Project	South Sumatra	154.7	Memorandum of Agreement (MOA)	--
6	PT Petras Indonesia and The Korean Consortium represented by Innet Company Ltd.	The Development of Tanjung Api-api Region the Energy Industry	Tanjung Api-api, South Sumatra	600	MOA	--
7	PT Nuansa Cipta Coal Investment and Kenertec Co., Posco Engineer & Construction Co. Ltd., Samsung Securities Co. Ltd.	Direct Coal Liquefaction	East Kalimantan	5,500	MOA	--
8	The East Kalimantan Provincial Government, PT Kereta Api, PT Nuansa Cipta Coal Investment and Kenertec Co. Ltd, Posco Engineering & Construction Co. Ltd.	Coal infrastructure	East Kalimantan	2,000	MOA	Coal transport by train
Total Investment				8,457.7
9	PT PLN (Persero) and PT Rajawali Koresia Consorsium, Hanwha Engineering & Construction Co., Korea Western Power Co. Ltd.	Mine Mouth Power Plant	South Sumatra	--	Memorandum of Understanding (MOU)	--
10	PT Medco Energi International Tbk with Korea Hydro and Nuclear Power Co Ltd Republic of Korea (KHNP).	Nuclear Power Plant	--	--	MoU	Business preparation in Indonesia, looking at possibility using an IPP scheme