Pertamina, SK Corp still in talks on Dumai expansion

State-owned oil and gas firm PT Pertamina continues studying a possible cooperation with South Korean chemical and refinery firm SK Corp. to expand the capacity of the latter's refinery in Dumai, Riau

"(We are) still in talks with SK. The study is continuing," Pertamina's President Director Ari Soemarno told reporters on Tuesday.

In December 2006, Ari announced that Pertamina and SK Corp. were studying a possible cooperation to expand the oil processing capacity of Dumai refinery from 120,000 barrels per day (bpd) to 170 bpd.

Ari then said that a feasibility study for the project was expected to start in January 2007.

He estimated the investment needed for the project at US$1 billion. (godang)