Medco, Malaysia?s SKS may join Banten refinery development

JSX-listed oil, gas firm PT.Medco Energi Internasional Tbk. is interested to take part in the proposed 300,000-BPD refinery that is being planned to be built in Banten along with Malaysian firm SKS Ventures Sdn. Bhd., an industry source said.

 

The source, which declined to be named, said that both companies are mulling to take between 10-20 percent stake in the project.

 

Medco Corporate Secretary Andy Karamoy when contacted by Petromindo.Com on Monday confirmed the company’s interest. “We have not made any commitment yet. We are still studying the possibility,” he said.

 

SKS Ventures, which is controlled by billionaire Syed Mokhtar Al-Bukhary is known to have link with National Iranian Oil Company (NIOC), which, along with Elnusa are the promoters of the refinery’s development. Elnusa is a wholly owned subsidiary of state oil and gas firm Pertamina.

 

The source said Elnusa and NIOC are currently waiting for confirmation from Venezuelan national oil firm Petroleos de Venezuela SA (PDVSA) to participate in the project. “Iran and Venezuela will supply crude to the proposed refinery. Iranian crude alone would not be adequate to supply the refinery,” the source, who is deeply involved in the refinery development plant, told Petromindo.Com. Earlier reports said that PDVSA would supply up to half of the refinery’s crude requirement.

 

A number of firms had planned to build refineries in Indonesia so far, but none has been really carried out. Industry players said that lack of incentives, swelling costs, low margin and lack of long-term crude supply had caused refineries development plan stalled. (godang)