Foreign firm to build oil refineries

Foreign firm to build oil refineries

Japanese and Middle Eastern companies are interested in
building oil refineries in Indonesia amid growing demand for oil
products in the country, a senior official said on Thursday.

Downstream director of state-owned oil and gas firm PT
Pertamina Harry Purnomo said Japan's Mitsubishi Corp. and Mitsui
Co. are among the interested investors.

He did not specify potential Middle Eastern investors, saying
only they were from Iran and Kuwait.

"They are currently conducting feasibility studies," Harry
said.

If the foreign investors proceed, the government expects the
refineries to be built in East Java, the second largest fuel
consuming area in Indonesia after Jakarta, Harry said.

No additional information on the investors' plans, including
the potential size of the refineries, was available, he added.

Indonesia currently has seven oil refineries operated by
Pertamina.

The country's oil and gas authorities are working hard to
boost investment activities in the sector. The government has
been offering several new oil and gas blocks to investors. In a
bid to attract new investment into the sector, the government has
also offered investors greater revenue share. -- Dow Jones