The HOA was agreed to carry out a feasibility study on the establishment of joint ventures."
Jakarta (ANTARA News) - Indonesian oil and gas company, Pertamina, and Thailand`s PTT Global Chemical Public Company Limited will build a petrochemical refinery with an estimated investment of up to five billion dollars, or about Rp48 trillion.

Pertamina spokesman Ali Mundakir said here on Monday that the state`s oil and gas company and PTT had signed the head of agreement of the petrochemical refinery complex construction in Indonesia.

"The HOA (head of Agreement) was signed today in Bangkok, Thailand. The HOA was agreed to carry out a feasibility study on the establishment of joint ventures," he said.

Ali said that the joint venture company is targeted to be completed by 2013, so the engineering, procurement and construction work can begin.

"Meanwhile, the commercial operation of the refinery is targeted to be done at least by 2018," he said.

Ali also said the feasibility studies including determination of capacity, the amount of shares in the joint venture, and the location of the refinery that will produce olefins and polymers.

"The refinery will be built in one of the Pertamina currently operating refinery, but the location is still under study process," he said.

Pertamina currently operates six refineries with a total unit capacity of up to one million barrels of crude oil per day.

The six refineries are located in Dumai Riau with a capacity of 170,000 barrels per day, Plaju South Sumatra with capacity of 118,000 barrels, Cilacap Central Java with capacity of 348,000 barrels, Balikpapan East Kalimantan with capacity of 260,000 barrels, Balongan West Java with capacity of 125,000 barrels, and Kasim West Papua with 10,000 barrels capacity

The refinery has the potential to be integrated with the petrochemical business, so it can create added value to Indonesian natural resources.

Meanwhile, PTT Global Chemical is a manufacturer of petrochemicals in Thailand with a total production capacity of 8.45 million tons per year and crude oil refining capacity to 280,000 barrels per day.
(Uu.A050/O001)

Editor: Priyambodo RH
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