Caltex Corp., the Asian joint venture of Chevron Corp. and Texaco Inc., is interested in buying stakes in Indonesia`s oil refineries to gain entry into the markets of the world`s fourth most populated country.
Indonesia`s parliament is debating a bill to end the downstream monopoly of state oil company Pertamina (OGJ, June 28, 1999, Newsletter). The bill, sponsored by the Ministry of Mines and Energy, aims to make the oil industry more efficient and transparent.
Simon Lowes, vice-president and regional manager, Far East, of Chevron Chemical International Sales Inc., says that everyone is watching the oil and gas bill very closely. His company hopes to participate in Indonesia because it is a huge market that it can`t afford to ignore.
Caltex did not comment on any specific investment plans in Indonesia, but Lowes said the company is interested in buying into export-oriented refineries such as the Balongan refinery. The Balongan plant, on Java, can process about 125,000 b/d of crude oil.
Lowes` comments suggest foreign oil companies are still looking for opportunities to invest in Indonesia`s oil industry, even though the country is struggling to recover from its worst economic slump in 30 years.