Joint venture continues with $3b refinery project<\/p>\n
JAKARTA (JP): Representatives of PT Kilang Minyak Nusantara
\n(KMN), a joint venture between Arabian, Chinese and Indonesian
\ninvestors, said the company would go ahead with its plan to build
\na US$3 billion refinery in South Sulawesi despite the country's
\npolitical instability.<\/p>\n
Ibrahim Al-Ogab, president of Saudi Arabia-based International
\nBusiness Company (IBC), which is a partner in the joint venture,
\nsaid the consortium was determined to continue with the project
\non the hope that Indonesia would manage to overcome the current
\neconomic and political crisis in the near future.<\/p>\n
"With the project, we intend to help Indonesia re-build market
\nconfidence in the business opportunities that exist in this
\ncountry.<\/p>\n
"But, the project is not merely driven by the wish to help the
\ncountry but also based on the optimism that Indonesia will
\nrecover from the crisis as other countries in the region have
\ndone and will become a strong country in two years," Ibrahim
\nsaid.<\/p>\n
IBC together with Al-Banader International Group, also from
\nSaudi Arabia, holds a 40 percent stake in KMN and is in
\npartnership with a consortium comprised of Chinese companies
\nChina National Electrical Equipment Corporation (CNEEC),
\nInvestment Pacific Inc., and Law Swee Seng, which hold a 40
\npercent stake.<\/p>\n
The remaining 20 percent is held by a joint venture of
\nIntanjaya Agromegah Abadi and American firm Inter Global
\nTechnologies.<\/p>\n
KMN has planned to build a giant refinery with a processing
\ncapacity of 300,000 barrels of oil per day in Bacukiki, Pare-
\nPare, South Sulawesi.<\/p>\n
"The construction of the refinery will start in one year or
\nmaybe less than one year," Ibrahim said.<\/p>\n
He said IBC and Al-Banader would guarantee the supply of crude
\noil to the refinery, while the Chinese partners will become the
\noff-takers of the refinery's products.<\/p>\n
He said American investment fund Alfax International Fund was
\nready to finance the project.<\/p>\n
Intanjaya's president Mappasulle HS said KMN was now in the
\nprocess of acquiring 1,000 hectares of land for the project.<\/p>\n
According to Mappasulle, KMN has gained the support of
\nPresident Abdurrahman Wahid and obtained permits from the local
\nauthorities.<\/p>\n
It was seeking to obtain a "recommendation" from Minister of
\nEnergy and Mineral Resources, which is a prerequisite for the
\ncompany to obtain the final license from the Investment
\nCoordinating Board (BKPM).<\/p>\n
He said the company did not need to seek approval from state
\noil and gas company Pertamina "because the planned refinery will
\nnot take crude oil from the domestic market and will sell most of
\nits products to the overseas market."<\/p>\n
Mappasulle further added that aside from the Pare-Pare
\nrefinery project, KMN also planned to build another refinery of
\nthe same capacity on Rempang Island in Riau.<\/p>\n
He said the company would begin the construction of the
\nRempang refinery six months after the construction of the Pare-
\nPare project started.<\/p>\n
Another investor, PT Hemoco Selayar International Oil
\nRefinery, which is 60 percent owned by Kuwaiti firm Hemoco Kuwait
\nGeneral Trading and Contracting Co, announced two years ago plans
\nto build a $2.4 billion refinery on Selayar Island, also in South
\nSulawesi.<\/p>\n
But, the future of the project remains unclear. (jsk)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/joint-venture-continues-with-3b-refinery-project-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }