Pertamina, Kuwaiti firm may build $3 billion oil refinery

State-owned oil and gas company PT Pertamina and Kuwait Petroleum Corp. (KPC) could jointly build an oil refinery in the Southeast Asian country, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Thursday.

The size and location of the project haven't been decided, but total investment could reach $3 billion, Purnomo said, without disclosing each company's investment.

"The companies will meet in Jakarta on May 10 to discuss details," he told reporters. It isn't clear if Kuwait will supply crude for the proposed refinery.

Separately on Friday, Pertamina president director Ari Soemarno said the firm would hold discussions with state-owned KPC and a private firm to resuscitate long-stalled plans to build a new oil plant in South Sulawesi.

"To realize the project, Pertamina will participate and will further talk with Kuwait and the private firm to accelerate the project," Soemarno said.

He said KPC was ready to provide crude for the project with a possible capacity of 250,000 bpd.

In 1998, Hemoco Selayar International Oil Refinery, a joint venture between Indonesian and Kuwaiti interests, planned to build a refinery in Indonesia, but the project has still not taken off. (Godang)