Petronas to refine RI crude

Petronas to refine RI crude

SINGAPORE (Dow Jones): Malaysian state-owned oil and gas
company Petroliam Nasional Bhd. (P.PET), or Petronas, will begin
processing crude for Indonesia's Pertamina in early December, a
source close said.

Petronas announced in October that it had signed a
confirmation of intent with Pertamina, to process 20,000 barrels
a day of sour crude through its Malacca II refinery for six
months beginning in November.

However, a final agreement has not been signed, a Pertamina
official said.

"We are still in discussion - it is not finalized yet," the
official said.

According to the agreement, Petronas also has an option to
provide sea transportation for the crude to the refinery,
Petronas said in its statement.

The crude for the processing deal will be sourced from Iran,
the source said.

The Pertamina official confirmed that crude for the deal would
come from the Middle East, but declined to provide further
details.