Lube plant in Medan

Lube plant in Medan

JAKARTA (JP): The American oil company Caltex has signed a memorandum of understanding with the state oil company Pertamina to build and operate a US$50-million lubricant blending plant in Medan, North Sumatra, the company said yesterday.

Caltex said it will hold 30 percent of the joint venture, Pertamina 40 percent and PT Andalas Nusamas, a consortium of three private Indonesian companies, the remaining 30 percent.

The plant is expected to come on stream in 1997, producing Pertamina-branded and Caltex-branded lubricants for domestic and export markets.

Caltex's subsidiary here, PT Caltex Pacific Indonesia, contributes 50 percent of Indonesia's total crude oil production.(04)