Omani investors eye Indonesia

Indonesian energy minister Sudister Said announced late last week that Oman has plans to invest $7 billion in building a refinery, petrochemicals plant and oil storage facilities in Indonesia. Oman has also promised to begin supplying crude oil to Indonesia.

Investors are in the process of acquiring permits from the Indonesian government for the planned refinery in the country’s Riau province. According to Said, the refinery is expected to open next year, and the products will be purchased by state-owned oil and gas company Pertamina.

The minister did not mention the investors by name during his speech. This investment is part of a larger initiative to get more Middle Eastern oil and gas investors interested in the archipelago.

The country has a demand of 1.5 million barrels per day, domestic production only reaches 800,000 barrels per day, leading to the need for investment in Indonesia’s oil and gas infrastructure. The country’s six refineries, the last of which was completed in 1994, are owned by Pertamina are dated and are unable to work at full capacity.

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