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FINANCIAL NEWS
Indonesia to sign oil deals with Saudi’s Aramco, Chinese CNOOC
04 Dec 2014
(MENAFN) Indonesia said that it will be signing agreements with China’s CNOOC Ltd, Saudi Aramco and two other oil companies to cover direct oil sales and refinery investments in the country, Gulf Business reported.
The country, South East Asia’s largest economy, is planning to modernize the country’s refineries and build new ones as it begins implementing necessary energy reforms as it deals with fast growing demand for energy resources.
Indonesia, which broke off talks on building two new refineries with Saudi Aramco and Kuwait Petroleum due to disagreements over tax issues last October, said that it is now hoping to a similar joint venture with Angola’s Sonangol, and expects to finalize an initial deal to provide Indonesia with 100.000 barrels per day (bpd) of crude next month.
Pertamina, Indonesia’s state energy firm, said that it needs up to USD25 billion in investment to double the crude intake of at least four of its existing refineries, to raise its total capacity to 1.6 million bpd by 2025, with the company currently considering plans to build two or three new refineries, each with a capacity of around 300.000 bpd.
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