Iran, China and Indonesia have reached a final agreement on building a refinery in Indonesia, Iran's state network, Press TV, reported on Wednesday.
The refinery will be located in Indonesia's East Java Island and have 150,000 barrels of daily capacity. With a joint venture plan, Iran will supply raw materials and participate in financing the project, while China will provide 85 percent of the project's finance, according to Press TV.
"Negotiations are underway with Iranian Minister of Petroleum Bijan Zangeneh for supply of heavy crude feedstock under a long-term contract," Hassan Khosrojerdi, head of the Iranian Oil Exporters Union, was quoted saying by the network.
Also, private companies of the three countries have plans to build five refineries for processing gas condensates in Indonesia, according to Khosrojerdi. He noted that these six refineries would cost $3.5 billion.
Building refineries overseas is a new strategy to secure Iran's crude oil exports in the long term. The country has further plans and efforts for building refineries in India and Brazil.
Iran is preparing for the post-sanctions period by planning to invest in the energy sectors of Latin American and Asian countries, while trying to attract international energy companies to invest in the country.
By Ugur Serhan Ozcan
Anadolu Agency
ugur.ozcan@aa.com.tr
