Sugico-MOK Energy to invest $800 million in synthetic oil plant

Sugico-MOK Energy, a joint venture between Sugico Group and MOK Industries LLC, will invest up to US$800 million in a synthetic oil plant which will be built in South Sumatra, Investor Daily reported Wednesday.

The company's chief operating officer Kokos Leo said in Jakarta Tuesday that the company would use low-rank coal as the raw materials for the production of the synthetic oil.

"We hope the project can be started next year, and will begin production in 2011,? Leo said.

He said that the company was currently seeking funds from international lenders while conducting a feasibility study

Sugico-MOK will produce first grade synthetic oil of between five and six barrels from one ton of low-rank coal. The company will use of solar cell to reduce the operating costs. (*)