Oman to invest in $7bn Indonesian oil refinery

Oman is set to participate in the development of Indonesia’s downstream oil and gas industry, and is preparing to build a new oil refinery in the country’s Riau province.

According to Indonesia’s energy and mineral resources minister Sudirman Said, Oman could supply the required crude oil for the refinery, develop storage facilities, “and later expand into petrochemicals”, as per reports in The Jakarta Post.

“It (Oman) has prepared US$7bn in total, and is now in the process of obtaining a permit. Ground-breaking of the refinery project is expected to be next year,” Said is reported to have claimed following a meeting with senior Omani officials.

The Indonesian daily reported Oman currently produces an average of 960,300 barrels of crude oil and condensate every day, as per figures by the country’s Ministry of Oil and Gas. The country exports a daily average of 948,493 barrels of crude oil, with China as the main buyer.

indonesia is planning to re-enter the Organisation of Petroleum Exporting Countries (OPEC), and securing more crude oil supplies will play a key role in the same.

“We are assessing all countries that have oil supply because a wider range of supply alternatives is better for us. We are a big buyer so it is normal to ask for good terms. Our intention is to have a direct deal so that we don’t have to go through middlemen,” Sudirman added.

 

Source:  Construction Week on Line