Iran, Indonesia to Sign Contract on Oil Refinery

A0171277.jpgTEHRAN (FNA)- Tehran said that it would sign a contract with Indonesia this week to help the Far-East state construct an oil refinery and a chemical fertilizer plant.

Iranian Foreign Ministry Spokesman Seyed Mohammad Ali Hosseini said that the documents would be signed by the two countries’ senior officials during the current visit by the Indonesian president to Iran.

The MoU for the construction of the joint refinery, which will use Iran’s heavy crude oil as feed, was signed in 2004 on the sidelines of the OPEC conference in Isfahan.

Based on that MoU, Iran would have a 30% stake in that refinery and would supply the plant with some 180,000 bpd of outputs of Soroush, Nowrouz and other heavy crude oil reservoirs.

The Indonesian Star Petrogas has 50% share in the 360,000-bpd Bandar Abbas condensate refinery (Persian Gulf Star Condensate Refinery).

Another Indonesian company is in talks with Iranian IOEC to bid for exploration/development of Iran’s Laleh offshore block.

Iran and Indonesia have also established a joint petrochemical company called ‘Hengam’, for construction of a Urea/Ammonia plant in Assalouyeh.

Indonesian state-run electricity firm PLN is also exploring the possibility of securing liquefied natural gas (LNG) supplies from Iran to meet the surge in gas demand from its power plants.

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