KUALA LUMPUR�A United Arab Emirates-UK venture is planning to build two oil refineries in the Indonesian provinces of Aceh and West Nusa Tenggara with a total investment of $2.8 billion, the Indonesian News Agency has reported.
It quoted Yus'an, a deputy chief of Indonesia's capital investment board, as saying that an Indonesian company�PT MITS, a local joint-venture partner�had asked for government approval to build the two refineries. PT MITS Indonesia is a joint venture between Britain's Mayhill International Trading & Service Co. and an investor from the UAE.
Yus'an said the $2.8 billion the companies pledged for the two refineries would come "entirely from their own capital."
The plant in Aceh will be built on the island of Weh, and the one in West Nusa Tenggara will be located on the island of Taliwang.
Each refinery would cost $1.4 billion to build and would have a processing capacity of 500,000 b/d of crude oil, all of which would be imported from the UAE.
The official said the plants would each have capacity to produce annually 1.6 million tons of gasoline, 800,000 tons of jet fuel, 1.3 million tons of diesel oil, and 800,000 tons of other products, including asphalt and oil residue.
The fuel products would be exported, but other products would be used in the domestic market.
Indonesia produces and exports sweet, low-sulfur crude oil and imports cheaper lower grades of oil for domestic use.