INDONESIA: Indonesia, Iran agree to boost cooperation in petrochemical sector

Indonesia is strengthening its bilateral cooperation with Iran particularly in the oil and gas sector following the recent removal of sanctions on Iran, one of the world’s biggest oil producers.

During a bilateral meeting in Bogor, West Java, the two countries agreed to cooperate in the upstream oil and gas sector, and data and technology exchange. The Energy and Mineral Resources Ministry’s oil and gas director general Wiratmaja Puja said Iran offered to supply crude oil, condensate and liquefied petroleum gas (LPG) as well as to develop refineries in Indonesia. In addition, the two countries also agreed to develop human resources as well as conduct research and development together.

“All of those will be conducted through business-to-business deals. Pertamina held a meeting on 25 Feb 2016 with Iranian firms so that the purchase of crude and LPG can be realized soon,” Wiratmaja said.

Meanwhile, Iran is also seeking to take part in the construction of an integrated refinery and petrochemical complex in Indonesia. The refinery capacity will be about 300,000 b/d.

“The total investment will reach USD 14 billion, including the petrochemical industry, but only USD 8 billion without it,” Wiratmaja said.

Source: Daily “The Jakarta Post”, Jakarta; 25 Feb 2016
(Syed Rashid Ali, Karachi, Pakistan)