Pertamina, Kuwait Petroleum to set up a joint venture

Sate owned oil and gas company Pertamina and Kuwait Petroleum Corporation (KPC) will establish a joint venture to build and operate an oil refinery in Balongan, Indramayu, West Java, Kontan reported on Tuesday.

Pertamina president director Karen Agustiawan said in Jakarta on Monday that the joint venture agreement would be signed by the Indonesian Energy and Mineral Resources Minister and his Kuwaiti counterpart in June, this year.

The joint venture would build and operate a refinery with a capacity of about 300,000 barrels per day. The refinery which will absorb investment of between US$8 and $9 billion will produce fuel products and naphtha for the domestic market.

Karen said that she hoped the government?s incentives for the construction and development of the refinery could be issued by April, this year. ?We hope the decision on the incentives will be made in April,? she said. (*)