RI, Iran firms team up to build oil refineries
Wednesday, February 12 2014 - 02:18 AM WIB
PT Kreasindo Resources Indonesia and Iran?s Nakhle Baharistan Pardis Company (NBPC) signed an MoU on Tuesday to build oil refineries in Banten and West Java provinces with capacity of between 20,000-30,000 bpd.
Kreasindo President Director Rudy Radjab said the two companies will soon carryout the feasibility study, in the hope that ground breaking for the projects could be implemented in 2015 and commercial operation in 2018.
He said that NBPC will provide about 30 percent of the financing requirement for the projects, estimated to cost about US$3 billion, while the remainder will be shouldered by Kreasindo, which will seek bank loans from China and South Korea.
Rudy said that through the MoU, Kreasindo has secured the necessary feed stock for the refineries from Iran. The output will be either sold at home or exported, he added.
Rudy said that the companies decide to build the refineries in Banten and West Java as the two provinces have huge market potential and infrastructure facilities such as port and gas pipeline.
Meanwhile, Kontan daily reported that Kreasindo is a little known company, owned by Mining and Energy Foundation (YPE), which was recently a target of investigation by the Corruption Eradication Commission (KPK) in relation to the alleged bribery scandal inflicting former secretary general of the Ministry of Energy and Mineral Resources, Waryono Karno, who was a former top official at YPE.
Editing by Reiner Simanjuntak