News Post
New Indonesian refinery to have up to 480-Mbpd capacity
A new refinery in Indonesia that Russia's Rosneft may help build will have a capacity of up to 480 Mbpd (24 metric MMt), according to Russian Economy Minister Alexei Ulyukayev.
Ulyukayev, speaking to reporters on the sidelines of a Russia-ASEAN summit in the Black Sea resort of Sochi, said there was agreement with Indonesia on the construction of a refinery with capacity of up to 24 metric MMt.
A Kremlin aide said that Rosneft and Indonesian state oil company Pertamina would sign a framework deal this week on an oil refinery in Indonesia, in what could be a first Russian foray into a region dominated by OPEC producers from the Gulf.
"This is a colossal project, and it is important that the plant's parts will be mostly produced in Russia, as this will create a synergy," Ulyukayev said, adding that Russian banks expected to lend money while oil firms supply crude.
Ulyukayev said that Russian banks may take a "significant" part in financing construction of the refinery. Russia has been turning to Asia after the West imposed sanctions over Moscow's role in the Ukraine crisis.
Rosneft and Pertamina could invest $8 B in the refinery, RIA news agency reported on Thursday, citing Indonesia's Energy Ministry.
Russian President Putin has estimated possible investments in the refinery at $13 B, Russian news agencies reported this week.
Russian Energy Minister Alexander Novak told reporters there was a possibility that Russia could supply crude to the plant, but suggested waiting for details to be worked out.
Indonesia's fuel output has been hit by a lack of investment in its refining sector since the last refinery was completed in 1994. Indonesia consumes more oil than it produces.
(Reporting by Katya Golubkova; additional reporting by Vladimir Soldatkin; editing by Adrian Croft)
For subscriptions or a demo:
Ed Bramwell
Subscriptions Sales Manager
+44 20 3793 9705
For questions or to give feedback:
Thad Pittman
Senior Researcher
+1 (713) 525-4605
Download our brochure today!
Project News