JAKARTA (Yosefardi) – Iran-based energy company Nakhle Barani Pardis Co and PT Kreasindo Resources Indonesia had signed memorandum of understanding for extra heavy crude oil sale and purchase and refinery project with total investment of US$3 billion, Bisnis Indonesia reported this morning.
Under the agreement, Barani will supply minimum 20,000 barrel per day and maximum 300,000 barrel per day to Kreasindo. This cooperation will run for 20 years. Barani might propose tax incentive such as tax holiday to the government of Indonesia for this refinery project.
The refinery will start construction in 2015, then targeted to operate in 2018. The refinery will be located in an area of Banten or West Java provinces. Kreasindo is one of several companies seeking to build refineries in Indonesia.