Talks to build E. Java refinery with Malaysia, Iran ongoing: Pertamina

State oil and gas company PT. Pertamina said talks with Malaysian oil firm Petronas and Iranian oil firm The National Iranian Oil Co to build a refinery in East Java are still ongoing, a Pertamina official said.

?Talks are still ongoing in a constructive manner, however we re not going to expect conclusion soon. It?s a long process,? said downstream Harry Poernomo over the weekend in Surabaya.

Pertamina is planning to build 200,000 BPD refinery in Tuban, East Java, near the TPPI petrochemical project, where Pertamina also has a minority stake.

Sources said Pertamina is planning minority role in the planned refinery, but would take all the products in order to maintain its downstream dominance.

Pertamina currently operates seven refineries with a combined operating capacity totaling just less than one million barrels a day. Harry said that the Tuban refinery project is vital to reduce the country?s dependency on imported oil products as domestic production of oil products currently meets only 70 percent of Indonesia's demand, with the remaining 30 percent coming from imports.

?Indonesia?s oil products consumption will continue to grow, therefore, within the next five years, I think Indonesia must have at least 2 x200, 000 BPD refineries in order to reduce dependency on imported oil products,? he said. (alex)