A consortium of investors from China, Saudi Arabia, and the United States, together with a local partner, are planning to develop two oil refineries in Indonesia, a report said Tuesday.
The refineries -- to be built in Pare Pare in South Sulawesi and on Batam island near Singapore -- would cost about three billion dollars each, the Jakarta Post said.
The joint venture firm, PT Kilang Minyak Intan Nusantara (KMIN), is made up of: Al-Banader International Group and International Business Co. from Saudi Arabia; China National Electrical Equipment Corp., Investment Pacific Inc. and Lau Swee Seng from China; US firm Inter Global Technologies and local partner PT Intanjaya Agromegah Abdi.
The Saudi investors will hold a 40 percent share, the Chinese another 40 percent while the Indonesian partner, which is already in a joint venture with the Inter Global Technologies, will hold the remaining 20 percent, the Post said.
International Business Co. (IBC) president Ibrahim Al-Oqab, said the joint venture is expected to begin construction of the refineries next year and commercial production is expected to start in the fourth quarter of 2004.
The two refineries would be capable of processing a total of 300,000 barrels of oil per day with 90 percent of its production being exported, Al-Oqab said.
He said while the raw material, crude oil, will be imported from the Middle East, the finished products would be exported mainly to China but also to other Asian countries such as Japan, South Korea, Taiwan, Singapore, Thailand, India and Bangladesh.—AFP.
©--Agence France Presse.