SAUDI ARABIA INVEST US$4 BLN IN INDONESIA

Xinhuanet -- 2 May 2006

Saudi Arabia to invest US$4 bln in Indonesia's oil sector www.chinaview.cn 2006-05-02 20:13:16

JAKARTA, May 2 (Xinhua) -- Saudi Arabia would invest about 4 billion U.S. dollars in Indonesia for building an oil refinery with total capacity of 400,000 barrels per day (bpd), said Iin Arifin, vice presidential director of Indonesian state oil firm Pertamina, here on Tuesday.

Arifin said that currently Pertamina was conducting a feasible study and the result would be reported to Indonesian Vice President Jusuf Kalla next week.

"To build a refinery with capacity of about 100,000 bpd, we need 1 billion US dollars (on average), so for the Saudi Arabian project, it needs about 4 billion U.S. dollars," said Arifin.

He said that Saudi Arabia would supply the crude oil to be processed at the refinery, then the production would be fully consumed for Indonesia's domestic need.

Now Indonesia still imported 300,000 bpd of oil to meet its consumption, he said.