0424 GMT December 12, 2019
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, according to Bloomberg.
The project's value is estimated at $8.4 billion and would be built over four or five years in Java, Mehr News Agency reported, quoting Hassan Khosrojerdi, head of the joint Iran-Indonesia refinery's board of directors.
Indonesia, already the only OPEC member that's a net oil buyer, may need to import half of its annual fuel needs even after increasing its refining capacity by 500,000 barrels a day in the next seven years, according to BMI Research. Iran is seeking to boost crude exports after international sanctions on its economy were eased in January.
A feasibility study on the refinery's economic justification is being conducted, a spokesman for Iran's Oil Ministry said. The National Iranian Oil Company has not signed any deals on the project, he said. Indonesia has made no decision on Iran's proposal because it's still preliminary, Puja said.