PT Kreasindo Resources Indonesia (KRI) and Iran’s Nakhle Barani Pardis Co. (NBP), Tehran, have entered an agreement for the planned construction of a grassroots refinery in Indonesia.
KRI and NBP signed a memorandum of understanding on Feb. 11 to explore the feasibility of building a refinery designed to process heavy crude oil in either West Java Province or Banten Province, Indonesia, KRI President Rudy Radjab told OGJ.
Under the agreement, KRI will own 70% of the planned 300,000-b/d refinery, while NBP will own the remaining 30% and act as the refinery’s heavy crude supplier.
Currently, the companies estimate the refinery will require an investment of $3 billion, which is based on an initial capacity of 150,000 b/d, Radjab added.
With both the bankable feasibility and site selection studies still to be completed, a specific timeframe for the project is not yet available.
