A British-United Arab Emirates venture is planning to build two oil refineries worth 2.8 billion dollars in the Indonesian provinces of Aceh and West Nusa Tenggara (NTB), a report said Thursday.
PT Mits Indonesia has asked for government approval to build the refineries in Weh island, Aceh and in Taliwang on Lombok island, an official of the Investment Board, Yus'an (eds:one name) was quoted by the Bisnis Indonesia daily as saying.
"By Thursday at the latest, we would already be able to issue an investment
approval to the new company because we have already received a recommendation from the director general of oil and gas (of the energy and mineral resources ministry)," said Yus'an.
Yus'an, the board's deputy head of investor services and facilities, said Mits Indonesia was a foreign venture with its stakes split 50:50 between Mayhill International Trading and Services of the United Kingdom and an unidentified investor from the United Arab Emirates.
He said the 2.8-billion dollars pledged for the two refineries would come "entirely from their own capital."
Each refinery, which would cost 1.4 billion dollars to build, would have a processing capacity of 500,000 barrels per day. The refineries will process crude imported from the United Arab Emirates, he said, adding that each would have an annual production capacity of 1.6 million tonnes of gasoline.
Each refinery would also produce 800,000 tonnes of jet fuel, 1.3 million tonnes of diesel oil and 800,000 tonnes of byproducts such as asphalt and residues each year, he added. With the exception of the byproducts, the refineries' products will all be exported.
Indonesia produces and exports sweet low sulphur crude oil, and imports cheaper lower grades of oil for its own domestic use.—AFP
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)
