Oman Oil Company Exploration & Production is planning to build two refineries in Indonesia in collaboration with Jakarta-based Pertamina. According to Indonesia's State-Owned Enterprises Minister Rini Soemarno, the Omani company has already conveyed its intention to invest in oil refineries in Bontang, East Kalimantan, and Kuala Tanjung, North Sumatra. "The company has conveyed its willingness to invest in Indonesia. We are arranging details of the location to enable fast construction," the minister was quoted as saying by Antara. The minister said that Pertamina as the partner is conducting relevant studies to finalise the plan.
"We are reviewing which refinery would be faster to build, Bontang or North Sumatra," Rini said.
According to Indonesian state-owned oil and gas company Pertamina president director Dwi Sutjipto, the investment details are currently being discussed by the two companies.
In the second half of last year, Indonesia's energy and mineral resources minister Sudirman Said announced that a number of investors from Oman expressed interests in developing oil and gas tanks, a refinery and a petrochemical plant in the country.
According to Rini, the two new refineries, once built, will increase the national production volume.
"We are reviewing which refinery would be faster to build, Bontang or North Sumatra," the minister said.
Cooperation between Oman and Indonesia is expected to continue flourishing in the coming years.
During the visit of Omani representatives to Jakarta late last year, the director general of Indonesia National Export Development Agency had announced that Jakarta is aiming to strengthen its foothold in Oman's fast-growing markets.
According to Central Statistics Agency data, the total value of non-oil trade between Indonesia and Oman in 2011-2015 period showed a negative growth of 11.88 per cent per year.
