Iraq committed to supply crude for planned refinery in RI: Minister

Iraq is committed to supply 300,000 bpd of crude for 20 years or more to the planned fuel refinery to be developed in Bontang, East Kalimantan.

Indonesia?s Minister of Energy and Mineral Resources Jero Wacik said that Iraq will also invest in the refinery project.

?Iraq is committed to supply crude oil to our refinery up to 300,000 bpd for 20 years at the minimum, which could be extended,? Jero said in a statement obtained late Tuesday.

The commitment provides optimism for the Indonesian government to be able to realize the planned refinery project, which is considered as crucial to help ensure national energy security, added the minister.

?In principle, the government of Iraq has agreed. (We?re) just waiting for further detailed discussions,? Jero said, adding that ground breaking for the refinery project is expected to be held before the current administration ends its term in October of this year.

Director General of Iraq?s Midland Oil Company, Delman N. Abdullah, confirmed his country?s commitment for the supply of crude to Indonesia, and to be one of the investors in the planned refinery.

Editing by Reiner Simanjuntak