Wednesday, October 12, 2011

Nigeria to invest Rp 24t in Indonesian refinery deal

Jakarta Post
12 October 2011

Nigeria plans to invest Rp 24 trillion (US$2.68 billion) in Indonesia to fund the construction of three oil refineries, an official says.

The Industry Ministry's director general for manufacturing-based industry, Panggah Susanto, was quoted by as saying that both countries had agreed to build the refineries in Indonesia.

Nigeria, which produces 2.6 million barrels of oil per day (bpd), was looking for a partner to refine its crude oil, Panggah said.

"Previously they wanted the refineries to be built in Nigeria," he said Tuesday. "However, as Indonesia is currently improving its downstream industry, Indonesia wanted the refineries to be built here instead." 

[So, that is end of story? Does this make any sense at all?? What fund is being used for this investment?  This at a moment when the “fuel subsidy” to pay for imported refined Nigerian crude is being passed to the poor consumer?  Because they cannot keep 4 refineries running at reasonable capacity in Nigeria? Curiouser and curiouser.]

The refineries, which are projected to produce 300 bpd each, will be used to process crude oil from Nigeria.

"State firm PT Pertamina will buy the crude oil from Nigeria and process it here," he said.

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