JAKARTA (DOW JONES) --National Iranian Oil Co. is expected to invest around $1 billion to build and operate an oil refinery in Indonesia, Iran's ambassador to Indonesia Shaban Shahidi Moaddab said Thursday.
He told reporters NIOC would invite Indonesia's state-owned oil and gas company PT Pertamina to join in the refinery project, but did not indicate the extent of this involvement.
If the project goes ahead, the refinery would be located in Tuban, East Java.
He did not mention when the project might commence, but said the refinery is expected to have a capacity of 150,000 barrels a day.
Indonesia currently has seven oil refineries operated by Pertamina, but growing demand for fuels means the country needs greater refining capacity.
