Pertamina to persuade Kuwait Petroleum Corporation to proceed with joint venture

PT Pertamina, Indonesia’s state-owned oil and gas company, said it will persuade Kuwait Petroleum Corporation (KPC) to continue with plans to jointly build a 300,000 barrel-a-day oil refinery in Balongan, West Java. Last August 11, 2011, the two companies signed an agreement to conduct a feasibility study for the refinery. Investment in the refinery is expected to cost US$9 billion. The refinery would help reduce Indonesia’s imports of petroleum products. KPC had asked that import taxes for the refinery equipment be waived, which was granted for a certain period only. “Pertamina is negotiating [the matter] with Kuwait Petroleum,” said Evita Legowo, the Ministry of Energy and Mineral Resources oil and gas director general. (March 7, 2012)