STX wants majority stakeholder in Banten refinery project: Source

STX Corporation of South Korea has agreed to take part in a consortium which will build an oil refinery in Bojonegara, Banten, Kontan reported on Wednesday.

State oil, gas firm PT Pertamina confirmed on Tuesday that the Korean had expressed its interest to take part in the US$4 billion refinery which would have a processing capacity of 300,000 barrels per day.

?However, the Korean company has asked for a special condition to be able to take part in the project,? said Pertamina?s Director for Processing Rukmi Hadihartini. She did not unveil the condition required by STX but sources said that the Korean company would join the project if it is allowed to become a majority shareholder.

Pertamina and its existing partners National Iranian Oil Refinering and Distribution Corporation (NIORDC) and Petrofield of Malaysia would sign an agreement today (Wednesday) on the establishment of a joint venture firm to build and operate the refinery.

Pertamina?s Vice President for Strategic Planning and Business Development, Priyo Utomo, said that the state oil company would discuss the possible involvement of STX only after the joint venture had been formally established.

?We hope we will be able to make decision within the next three days,? he said, adding that if STX finally agreed to take part in the project, the ownership in the joint venture would consequently change.

At present, Pertamina and NIORDC have 40 percent share each in the joint venture, with the remaining 20 percent being held by Petrofield. (*)