Libya to build oil refinery in Indonesia

Indonesia and Libya have agreed to increase cooperation in oil and gas sector with Libya planning to build an oil refinery in Indonesia, while Indonesia mulling to invest in exploration activities in the Middle Eastern country, Kompas reported no Friday.

?We will convey this cooperation plan to President,? Minister of Energy and Mineral Resources Purnomo Yusgiantoro said during a press conference on Thursday in Jakarta after holding talks with the son of Libyan President Moammar Qaddafi, Faiz Al-Islam Qaddafi.

Purnomo also said he and Qaddafi's son discussed about Indonesia?s commitment to buy 50,000 barrels per day.

?Though the agreement was made during President Megawati Soekarnoputri?s period, the present government will continue the commitment,? Purnomo said.

Faiz Al-Islam was also hopeful that President Susilo Bambang Yudhoyono would honor that commitment, which had yet to be realized. He also said that Libya is planning to build an oil refinery in Indonesia and the raw material for this refinery will come from Libya.

?We will appoint a technical team to materialize this plan. This team will determine how much investment would be needed and the location of the project,? Faiz Al-Islam, said.

As far as Indonesia is concerned, Purnomo said the government will encourage oil and gas companies like state-owned PT Pertamina and PT Medco Energi Internasional Tbk to participate in exploration tenders in Libya.

?There are still many oil fields are yet to be explored,? Purnomo said. (*)