Nullarbor, Pertamina to form JV on biodiesel project

Sydney-listed firm Nullarbor Holdings Limited is in final negotiations with Indonesia?s state oil and gas firm PT Pertamina to form a joint venture (JV) on biodiesel project in Indonesia.

Singapore-based Kuok Oils & Grains Pte Ltd (KOG) earlier said it would participate as a partner in the joint venture, but Nullarbor said in a statement to the Australian Stock Exchange on Friday that KOG wouldn't be able to participate as an equity partner because of time constraints caused by its planned merger with plantation firm Wilmar International Limited.

Nevertheless, the statement said, KOG has indicated its willingness to supply the joint venture with palm oil feedstock and extensive technical assistance including advice on choice of plant and the training of operational personnel.

In July 2006, Nullarbor said that under the agreement with Pertamina, it would finance a detailed feasibility study (FS) of the project by an independent consultant. The estimate cost of the FS is US$600,000.

The FS is expected to be completed within 3 months and the commissioning will be carried out 24 months after the FS is completed. (denny)