Thursday, May 6, 2010

Libya Eyeing 2 Oil Refineries in Indonesia

VIVAnews - Libyan oil company National Oil Corporation (NOC) is reportedly interested in investing in Bojanegara Oil Refinery and expanding Balongan Refinery in West Java.

NOC Chairman Shukri Muhamed Ghanem said the company was highly interested in supplying crude oil and being a shareholder in the project that is supposedly in need of US$13 billion investment.

“We are expecting to sign the agreement with PT Pertamina, as the operator, as soon as possible,” Ghanem said at a press conference after attending a meeting with the Minister of Energy and Mineral Resources (ESDM) Darwin Zahedy Saleh at the office of ESDM Ministry in Jakarta on Thursday, May 6.

According to him, NOC also plans to invest its funds on the refineries as well as take up the shares in both projects.

Meanwhile, Saleh said Indonesia was in high need of refinery investments in order to suppress fuel oil imports.

“The government is open to Libya’s plan of stepping into the projects,” the minister said. On the other hand, Libya has also invited Indonesian oil and gas companies to participate in the country’s upstream oil and gas activities.

“Besides the explorers, Libya also invited upstream oil and gas service providers,” he said.

ESDM Ministry’s Oil and Natural Gas Director General Evita Herawati Legowo said the government and Pertamina required two additional refineries with the capacity of 300 thousand barrels per day each.

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