Indonesia partners with Iran to build $3b refinery
An Iranian oil firm and an Indonesian company are looking to build a refinery in the southeast Asian nation worth at least $3 billion. Tehran-based Nakhle Barani Pardis (NBP) signed a memorandum of understanding with PT Kreasindo Resources Indonesia to explore the feasibility of setting up the refinery, which will have a capacity to process as much as 300,000 barrels per day (bpd) of heavy Iranian crude oil.
Indonesia is desperate to expand its refining capacity to be less dependent on oil imports, but attracting partners has been difficult with government talks between Kuwait Petroleum and Saudi Aramco recently stalling over tax issues. For the last 10 years, no projects have moved beyond the initial planning stages.
Kreasindo may also purchase for the long term up to 300,000 barrels per day from NBP, and the Iranian company is willing to invest up to 30 percent for “realisation of the refinery”, according to terms of the planned deal.
Indonesia now has about 1 million bpd of refining capacity that meets about two-thirds of its demand, meaning it has to import more than 500,000 bpd of fuel products to fill the gap.
Iran is emerging from international isolation after striking an interim deal with the US, France, Germany, Britain, Russia and China to curb Tehran’s nuclear work in exchange for some relaxation of sanctions. Total trade between Iran and Indonesia has risen nearly five times over the last decade, totalling $1.26 billion in 2012, according to Indonesia’s trade ministry.
An Iranian oil firm and an Indonesian company are looking to build a refinery in the southeast Asian nation worth at least $3 billion. Tehran-based Nakhle Barani Pardis (NBP) signed a memorandum of understanding with PT Kreasindo Resources Indonesia to explore the feasibility of setting up the refinery, which will have a capacity to process as much as 300,000 barrels per day (bpd) of heavy Iranian crude oil. Indonesia is desperate to expand its refining capacity to be less dependent on oil imports, but attracting partners has been difficult with government talks between Kuwait Petroleum and Saudi Aramco recently stalling...
An Iranian oil firm and an Indonesian company are looking to build a refinery in the southeast Asian nation worth at least $3 billion. Tehran-based Nakhle Barani Pardis (NBP) signed a memorandum of understanding with PT Kreasindo Resources Indonesia to explore the feasibility of setting up the refinery, which will have a capacity to process as much as 300,000 barrels per day (bpd) of heavy Iranian crude oil.
Indonesia is desperate to expand its refining capacity to be less dependent on oil imports, but attracting partners has been difficult with government talks between Kuwait Petroleum and Saudi Aramco recently stalling over tax issues. For the last 10 years, no projects have moved beyond the initial planning stages.
Kreasindo may also purchase for the long term up to 300,000 barrels per day from NBP, and the Iranian company is willing to invest up to 30 percent for “realisation of the refinery”, according to terms of the planned deal.
Indonesia now has about 1 million bpd of refining capacity that meets about two-thirds of its demand, meaning it has to import more than 500,000 bpd of fuel products to fill the gap.
Iran is emerging from international isolation after striking an interim deal with the US, France, Germany, Britain, Russia and China to curb Tehran’s nuclear work in exchange for some relaxation of sanctions. Total trade between Iran and Indonesia has risen nearly five times over the last decade, totalling $1.26 billion in 2012, according to Indonesia’s trade ministry.
