Indonesia Weighs Iran’s Proposal for $8.4 Billion Oil Refinery
- Iran’s oil ministry says feasibility study being conducted
- Refining capacity being expanded at slower rate than demand
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Indonesia will study a proposal from Iran to build an oil refinery, along with bids from other countries, as it seeks to boost refining capacity to catch up with rising consumption.
Iran proposed a plant with processing capacity of more than 100,000 barrels a day and pledged to provide the crude, IGN Wiratmaja Puja, director-general of oil and gas at the Energy and Mineral Resources Ministry, said in Jakarta on Tuesday. The project’s value is estimated at $8.4 billion and would be built over four or five years in Java, Iran’s state run news agency Mehr reported, citing Hassan Khosrojerdi, head of the joint Iran-Indonesia refinery’s board of directors.