Saudi Arabia, China investors to build two refineries
Thursday, September 28 2000 - 04:00 AM WIB
PT Intanjaya Agromegah Abadi, a joint venture of Saudi Arabia, China and Indonesian businesses, plans to build two oil refineries in Pare-Pare, South Sulawesi, and Rempang island, Riau, with a total investment of US$6 billion.
Intanjaya president Mappasulle H.S. told a press conference in Jakarta on Wednesday that President Abdurrahman Wahid signed his approval for the projects on Monday.
Mappasulle said the joint venture, established last April, would build the Pare-Pare refinery plant in the next two months, with total investment of $3 billion. Then, two months after Pare-Pare, the company would build the other refinery plant in Rempang, also with investment of $3 billion.
Each refinery would produce 300,000 barrels of fuels per day. The products include premium, aviation fuels, kerosene, diesel oil, liquefied petroleum gas, petrochemical naphtha, asphalt and sulfur.
About 90 percent of the refineries' products would be exported to China, while the remaining 10 percent would be sold in the domestic market.
The refineries would employ around 1,000 people, including 50 expatriates.
Intanjaya is 40 percent by Al-Banade International Group/International Business Group of Saudi Arabia, 40 percent by a Chinese company and 20 percent by local businesses. Mappasulle decline to name the Chinese and Indonesian partners in the venture. (*)