Publish Date: 22 November 2020 - 18:56

TEHRAN, Nov. 22 (MNA) – Indonesia will study a proposal from Iran to build an oil refinery, as it seeks to expand its oil refining capacity by 500,000 barrels per day (bpd) in the next seven years.

Iran has proposed to build an oil refinery in Java, Indonesia with a processing capacity of more than 100,000 barrels per day, News portal Fuels and Lubes quoted IGN Wiratmaja Puja, director-general of oil and gas at Indonesia’s Ministry of Energy and Mineral Resources.

Local media citing Hassan Khosrojerdi, head of the joint Iran-Indonesia refinery’s board of directors, say the project is estimated at $8.4 billion.

Iran, which is seeking to boost crude oil exports, can supply crude oil to the proposed refinery. The is now conducting a project feasibility study, a spokesman for Iran’s oil ministry said.

Indonesia is building four refineries, ranging in capacity between 300,000 and 350,000 bpd each.

MR/IRN84119218/PR