Japanese to spend US$6 bln on Indonesian oil refinery, LNG projects

Jakarta (ANTARA News/Asia Pulse) - Three Japanese investors have agreed to cooperate with Indonesia's PT Pertamina to invest US$6.5 billion on oil refinery and liquefied natural gas (LNG) projects in Indonesia.

Mitsui Oil Exploration Co. will team up with Pertamina to modify the Cilacap oil refinery in Central Java at a cost of US$1.9 billion expanding its processing capacity from 348,000 to 410,000 barrels of crude per day.

Pertamina will also, in cooperation with Itochu Corp. (TSE:8001), expand the daily processing capacity of its oil refinery in Balikpapan from to 280,000 barrels and that of the Balongan refinery in Indramayu to 250,000 barrels at a cost of around US$3.2 billion, a Pertamina official said. Pertamina also plans to build an LNG plant in Senoro, Central Sulawesi at a cost of US$1.4 billion in cooperation with Mitsubishi Heavy Industries (TSE: 7011).