Pertamina, Sinopec extends MOU on Tuban refinery project

State owned oil and company Pertamina and its Chinese partner China Petroleum & Chemical Corporation (Sinopec) have recently extended the memorandum of understanding (MOU) of their plan to jointly build the US$2 billion oil refinery in Tuban, East Java, Bisnis Indonesia reported Monday.

The move will give more uncertainty to the fate of the project which has been delayed for years

Pertamina's director for processing Suroso Atmomartoyo said in Jakarta last week that the companies had extended the MOU because the companies would need more time to complete the feasibility study of the project.

Pertamina together with Sinopec started the feasibility study of the project in August 2005.

Under MOU, first signed during President Bambang Yudhoyono's visit in China in July last year, the construction should have been commenced at the end of 2005. It will have a crude processing capacity of 150,000 barrels per day,

Aramco of Saudi Arabia said recently that it would team up with Pertamina in the construction of the refinery plant. But no concrete talks had so far been made on the Saudi Arabian company's plan to join the project. (*)